Meta's aggressive investment in artificial intelligence is winning over Wall Street. The company’s stock surged in after-hours trading on Wednesday following a strong second-quarter earnings report that surpassed analysts’ expectations.
The tech giant, headquartered in Menlo Park, California, reported a significant boost in advertising revenue and user growth across its social media platforms, helping to offset its soaring AI development costs and high-end talent recruitment, News.Az reports, citing AP News.
Meta reported a Q2 profit of $18.34 billion, or $7.14 per share, marking a 36% increase from the same period last year, when it earned $13.47 billion, or $5.16 per share.
“Not only has Meta made demonstrable strides with AI, but it’s helping to future-proof itself as a growth company, should its family of apps get affected by the current antitrust case or shifting user sentiment,” said Mike Proulx, research director at Forrester.
Meta is currently awaiting a judge’s ruling in an antitrust case that could potentially break up its ownership of WhatsApp and Instagram—two platforms that have become major drivers of its success since their acquisition over a decade ago.
Despite regulatory pressures and heavy AI investments, Meta’s performance signals strong investor confidence in the company's long-term vision.
