Meta Shares Surge 12% on Strong Q2 Results

by MarketNewsData

Meta Platforms (META) delivered a robust second quarter, marked by accelerating ad growth and a massive step-up in AI infrastructure investment. Shares closed up 11.25% to $773.44.

Key Financials (Q2 2025)

  • Revenue: $47.55B, up 22% YoY (vs. est. ~$46B)

  • Net Income: $18.32B, up 36% YoY

  • EPS (GAAP): $6.11 (beat vs. est. ~$5.90)

  • Ad Revenue Drivers:
    • Ad impressions +11% YoY
    • Ad price per unit +9% YoY

  • Family Daily Active People (DAP): 3.24B, up 7% YoY

  • Operating Margin: 45% vs. 38% a year ago

Guidance and Capital Allocation

  • Q3 Revenue Outlook: $41.0B–$43.0B (17–24% YoY growth)

  • Full-Year Capex (2025): Raised to $66B–$72B (from $65B–$70B)

  • 2026 Capex Forecast: ~$100B – a historic high for Meta

  • Buybacks: $14.6B repurchased in Q2

CEO & CFO Commentary

  • Mark Zuckerberg: “We’re building general intelligence to power our products and open source it responsibly. This is a massive effort across our infrastructure, AI research, and product teams.”

  • Susan Li (CFO): Emphasized growing infrastructure needs for AI training and inference. Said spending is “aggressive but aligned with long-term priorities.”

Strategic Highlights

  • AI Investment: Capex plans now rival or exceed Microsoft and Alphabet. Meta is clearly pivoting toward AI as a core competency.

  • Smart Glasses (Ray-Ban Meta): Zuckerberg highlighted early momentum in Meta AI integration with smart glasses. He noted they’re the “only glasses shipping today with an AI assistant that you can talk to and see the world through.”

  • Reality Labs: Q2 operating loss of $(3.7B); full-year loss expected to grow YoY as investments in AR/VR and XR platforms continue.

  • Product Pipeline: Continued rollout of Llama 3 models; Threads and Reels driving engagement across the Family of Apps.

Peer Context

  • META’s 45% operating margin surpasses Alphabet’s ~31% and rivals Apple’s.

  • Smart glasses and XR roadmap contrast with Apple Vision Pro’s early challenges and Snap’s limited traction in AR hardware.

Stock Reaction

  • Closed at $773.44 (+11.25%), after hitting a high of $784.75.

  • YTD performance now +45%; market cap nearing $2T.

Takeaway

Meta’s quarter showed strength across the board—ads, users, and margins. But the long game is clear: AI everywhere, including your glasses. With $100B in future capex and integrated devices already in-market, Meta is staking leadership not just in AI software, but in the hardware and compute stack too.

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