Meta, the parent company of Facebook, reported strong second-quarter earnings, surpassing expectations and driving a significant rise in its stock price, AP News reports.
The company earned $13.47 billion ($5.16 per share), a 73% increase from the previous year, with revenue rising 22% to $39.07 billion, exceeding analyst forecasts. Despite plans for substantial future investments in artificial intelligence, which will significantly raise expenses, Meta’s robust ad revenue reassures investors about its financial stability. CEO Mark Zuckerberg highlighted that Meta’s AI efforts are aimed at enhancing its advertising business and developing new features. The company anticipates its AI assistant will become the most widely used by year-end and expects third-quarter revenue between $38.5 billion and $41 billion.
Meta’s daily active users reached 3.27 billion, a 7% increase from the previous year, and its new platforms, including Threads and WhatsApp, are showing strong growth. The stock surged by 5% in after-hours trading following the report.
