Archive · 30 Jul 2026
Meta Raises Capex, Faces Profit Drop Amid AI Spending
Meta, the company that owns Facebook and Instagram, said it spent a lot of money on new computer centers to help its AI programs.
In the second quarter, it made $60.8 billion but costs jumped even more, so its profit fell to $18.3 billion.
The CEO, Mark Zuckerberg, said the AI work is speeding up all parts of the business and that Meta might sell computer power to other companies.
After the news, Meta’s stock dropped about 9% in after‑hours trading.
Meta also made new AI tools like Muse Spark and Muse Image, but it still faces big legal bills and a loss in one of its addiction lawsuits.
Meta raised its 2024 capital expenditure forecast to $130 billion, up from $125 billion.
Q2 revenue was $60.8 billion (+28% YoY) but costs rose 55% to $42 billion, cutting profit to $18.3 billion (-14% YoY).
CEO Mark Zuckerberg said AI investments are accelerating core business and that selling compute power could be a new opportunity.
Meta’s stock fell more than 9% in after‑hours trading after the earnings release.
The company released AI models Muse Spark and Muse Image, plans a new model Watermelon, and spent $2.4 billion on legal fees.
- Who
- Meta Platforms, Inc. and CEO Mark Zuckerberg
- What
- Q2 earnings report, increased 2024 capex forecast, AI investment focus
- When
- Quarter ended March 2024; earnings released Wednesday
- Where
- Meta’s global operations
- Why
- To expand AI capabilities and build data centers
- Capital Expenditure Forecast 2024
- $130 billion
- Q2 Revenue
- $60.8 billion
- Q2 Profit
- $18.3 billion
- Q2 Costs
- $42 billion
- Stock Movement
- down 9% after hours
- AI Models Released
- Muse Spark, Muse Image
- Legal Fees Q2
- $2.4 billion