Shares of Meta Platforms Inc. (META) surged over 12% to record highs after reporting strong Q2 earnings and optimistic Q3 guidance. The rally lifted ETFs like XLC and QQQ with heavy exposure to Meta. Leveraged funds like FBL also surged 24%.

Meta reported EPS of $7.14, beating estimates of $5.89, with revenue at $47.5 billion, up 22% YoY. Third-quarter revenue guidance is $49 billion, above the consensus of $46.2 billion. CEO Zuckerberg credited AI for driving growth in Meta’s core business.

Meta has aggressively hired top researchers for its Meta Superintelligence Lab to develop AI models and products. Despite lagging behind rivals, Meta is investing heavily in catching up. Capital expenditures are expected to reach $69 billion this year, potentially hitting $100 billion in 2026.

Investors are optimistic about Meta’s long-term strategy as the company sees quicker payoffs from its big spending. Meta’s metaverse vision is evolving, with products like Ray-Ban Meta smart glasses seeing strong demand. Advanced AR devices blending metaverse and AI efforts are in development.

Read more at Yahoo Finance: Meta Surges on Blowout Q2 Earnings, Boosting Related ETFs