Movement Alert|Meta Platforms, Inc. Overnight Decline 7.23%, Q2 EPS Misses Estimates as AI Spending Crushes Free Cash Flow

Market Focus08:03

On July 30, Meta Platforms, Inc. declined 7.23% overnight, trading at $543.47/share, with turnover of $1.2436 million.

The decline was triggered by the company's Q2 earnings report, which revealed a significant EPS miss and a sharp deterioration in free cash flow driven by surging AI-related capital expenditures. Meta reported Q2 revenue of $60.8 billion, up 28% year-over-year and slightly above estimates of $60.2 billion. However, EPS came in at $6.18, missing the consensus estimate of $7.13 by over 13%. Operating cash flow reached $31.86 billion, but capital expenditures of $31.08 billion left free cash flow at just $784 million — down drastically from $8.55 billion a year ago and marking a four-year low.

Additionally, Q3 revenue guidance of $61 billion to $64 billion placed the midpoint below the analyst consensus of $63.17 billion. The company narrowed its full-year capital expenditure outlook to $130 billion-$145 billion, incorporating a $2.4 billion legal charge in Q2. The results intensified investor concerns over the timeline for returns on Meta's massive AI infrastructure investments.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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