Meta earnings reveal cash flow drops 91% - while Zuckerberg writes op-eds about superintelligence
Meta reported a 14% decline in quarterly profit despite a 28% increase in revenue, citing legal and severance costs. CEO Mark Zuckerberg continues to emphasize the company's focus on AI development and its potential for future growth.
Why it matters
Meta's financial performance and strategic pivot toward AI are significant indicators of the broader tech industry's investment priorities.
Meta Platforms said Wednesday its second-quarter profit declined even as revenue beat Wall Street’s expectations, as legal expenses and severance costs for recent layoffs weighed on its results.
The Facebook and Instagram parent company earned $15.85 billion, or $6.18 per share, in the April-June period. That’s down 14% from $18.34 billion, or $7.14 per share, in the same period a year earlier.
Revenue grew 28% to $60.8 billion from $47.52 billion.
Analysts, on average, were expecting earnings of $7.19 per share on revenue of $60.22 billion, according to a poll by FactSet.
“AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities,” said CEO Mark Zuckerberg in a statement. “The results are already showing, and I’m optimistic about the potential ahead.”
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