Meta Touts Industry-Leading ad Revenue Growth, but AI Unease Rises
Record ad sales are helping Meta fund heavy AI and infrastructure spending despite a quarter marked by $3 billion in stock compensation and other charges.
- On Thursday, July 30, Meta Platforms reported record quarterly revenue of $60.8 billion, yet shares fell as massive AI investments pressured cash flow and earnings.
- Capital expenditures surged to $31.1 billion for the quarter, roughly double the prior year's spending, as Meta narrowed its full-year CapEx forecast to between $130 billion and $145 billion.
- Advertising revenue grew 27% to $59.4 billion, while Advantage+, Meta's AI-powered ad suite, reached a $75 billion annual revenue run rate, demonstrating strong monetization momentum.
- In contrast, Microsoft's stock jumped nearly 8% after earnings, with diluted EPS reaching $4.81 for its fiscal fourth quarter, up from $3.65 the previous year.
- Meta CEO Mark Zuckerberg called the consumer AI market a "massive market opportunity" on Wednesday's earnings call, though the company forecast third-quarter revenue between $61 billion and $64 billion.
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Meta Platforms vs. Microsoft: What Recent Revenue Trends Tell Investors About These Artificial Intelligence Companies
Key PointsMicrosoft currently generates substantially higher total revenue than Meta Platforms in each reported period.Both companies have steadily increased their quarter-over-quarter revenue over the last eight periods, though Meta Platforms exhibits more pronounced seasonal dips in the first calendar quarter of each year.Investors should watch whether the total revenue gap between the two companies continues to widen in upcoming quarters.10 s…
Meta and Microsoft's AI spending: a tale of two earnings reports
Microsoft CEO Satya NadellaSven Hoppe/picture alliance via Getty ImagesThis post originally appeared in the Business Insider Today newsletter.You can sign up for Business Insider's daily newsletter here.Meta's message to investors: The AI spending will continue until returns improve.Investors' response: No thanks.AI spend was the big focus during Meta's Q2 earnings report. And the pitch wasn't convincing enough to stop an after-hours selloff.Met…
Meta increases quarterly sales to 60.8 billion dollars. However, after high investments, only 784 million dollars of free cash flow remain. The share temporarily loses more than nine percent.
Meta has just reported fresh quarterly figures. For the period from April to June 2026, the tech giant has 60.8 billion US dollars of revenue and 15.8 billion US dollars of profit in the books. The source of these revenues is above all the advertising business. Whether this remains dependent on the use of the meta offers. Their popularity differs, as results of Statista Consumer Insights show. Thus WhatsApp is popular across age groups in German…
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