Archive · 30 Jul 2026
Meta’s Free Cash Flow Drops 91% as AI Spending Soars
Meta, the company that owns Facebook and Instagram, spent a lot of money on new computer technology to help its artificial‑intelligence programs learn.
Because of this, the money it had left after paying its bills fell a lot, from $8.55 billion to just $784 million.
But the company still made more money from ads, up 28% to $60.8 billion.
The CEO said the new AI tools could become big businesses in the future.
Investors were worried and the stock price fell about 10% after the earnings report.
Meta plans to spend up to $145 billion on AI this year, which is double what it spent last year.
Meta’s Q2 free cash flow fell 91% to $784 million due to AI investment.
Revenue rose 28% to $60.8 billion, driven by a strong advertising business.
CEO Mark Zuckerberg said AI will create new profitable businesses, including personal agents.
Investors reacted negatively, shares fell 10% in after‑hours trading.
Meta plans to spend up to $145 billion on AI infrastructure this year, doubling last year’s spend.
- Who
- Meta Platforms, Inc. and its CEO Mark Zuckerberg
- What
- Meta reported a 91% drop in free cash flow while revenue grew 28% due to AI spending
- When
- Q2 2024 (quarter ended June 30, 2024)
- Where
- Meta’s global operations
- Why
- Heavy investment in AI infrastructure and computing power
- Free cash flow (Q2 2024)
- $784 million
- Revenue (Q2 2024)
- $60.8 billion
- AI investment (2024)
- $145 billion
- Share price reaction
- 10% drop after hours
- CEO
- Mark Zuckerberg