Meta to report Q2 earnings amid AI investing issues
Meta (META) will report its second quarter earnings after the bell on Wednesday, giving Wall Avenue its newest look into the corporate’s AI investments and whether or not they’re paying off.
The announcement comes as Meta inventory continues to wrestle to regain its footing and buyers query CEO Mark Zuckerberg’s capex plans. The corporate has stated it plans to spend upwards of $145 billion this yr, with the majority of that going to its knowledge middle build-out.
On Tuesday, Meta and BlackRock introduced they’re coming into into an settlement to construct a $14 billion, 1-gigawatt knowledge middle in Texas. BlackRock will maintain an 80% stake within the website, whereas Meta will get the remaining 20%.
Shares of Meta are off practically 10% yr so far and roughly 16% over the past 12 months. Out of the “Magnificent Seven” shares, solely Microsoft (MSFT) inventory has lagged extra within the final yr, dropping 24% on comparable issues concerning the firm’s AI spending.
However Meta has additionally given buyers some hope extra not too long ago. Earlier this month, Zuckerberg advised Bloomberg that it is sensible for the corporate to discover leasing out a few of its knowledge middle capability to clients.
It is not clear how Meta would construction any offers, nevertheless it may flip towards SpaceX (SPCX) for inspiration. That firm has arrange multibillion-dollar preparations to lease entry to its AI capability to Anthropic (ANTH.PVT) and Google (GOOG, GOOGL).
Meta may additionally select to function equally to a neocloud firm like CoreWeave and easily lease out its {hardware} as is.
The corporate additionally debuted its new Musk Spark 1.1 mannequin this month and revealed an aggressive pricing scheme that considerably undercuts the price of utilizing fashions from OpenAI and Anthropic.
Meta prices builders $1.25 per million enter tokens and $4.25 per million output tokens. Anthropic at the moment prices $5 per million enter tokens and $25 per million output tokens for its Opus 4.8 mannequin, which Meta compares with Spark 1.1.
By setting costs so low, Meta may take market share from the massive AI labs as price-conscious clients search higher offers on AI fashions.
For Q2, Meta is predicted to report earnings per share of $7.14 on income of $60.23 billion, in accordance with Bloomberg analyst consensus estimates. The corporate noticed EPS of $7.14 and income of $47.51 billion in the identical interval a yr in the past.
Promoting income is projected to come back in at $58.99 billion, up 26% from the $46.56 billion the corporate introduced in in Q2 2025.
Capex, nonetheless, is ready to extend 100% to $33.15 billion for the quarter.
Electronic mail Daniel Howley at dhowley@yahoofinance.com. Comply with him on X at @DanielHowley.
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