Meta Surges as Strong Q2 Earnings Offset Soaring AI Costs
Meta is making headlines once again, this time for a powerful second-quarter performance that beat analyst expectations, despite ramping up its investment in artificial intelligence.
Shares in the tech giant, which owns Facebook, Instagram, and WhatsApp, soared over 11% in after-hours trading following the release of its Q2 earnings report. The spike reflects growing investor confidence in Meta’s long-term vision, even as it commits billions to AI infrastructure and top-tier talent.
In the April to June period, the company reported a net income of $18.34 billion, a sharp 36% rise compared to $13.47 billion the year before. Revenue also jumped 22%, hitting $47.52 billion, fuelled largely by Meta’s ever-expanding ad business.
“We are investing aggressively in AI infrastructure and talent to drive future products,” said a company spokesperson.
Despite the strong quarter, Meta has warned of rising costs. The company expects its 2025 expenses to land between $114 billion and $118 billion, a jump of up to 24% from the previous year.
Much of this will go toward expanding data centres and securing highly skilled AI engineers.
While such spending might have raised eyebrows in the past, the current market sees it differently. The results show that Meta can still drive growth, even while spending heavily. That balance between high investment and strong returns is increasingly becoming the benchmark in tech.
The broader industry trend is clear: big tech firms are doubling down on AI, each trying to carve out its space in the generative AI boom. Meta’s approach appears to be paying off.
As seen in a closer look at how Meta’s AI investments have directly impacted its stock surge, analysts believe the strategy is starting to deliver results for shareholders.
For now, Meta seems determined to lead the charge into the AI future, and investors, it seems, are on board.
