Shares in Meta, the tech firm behind Facebook and Instagram, have surged in extended trading after posting a bumper set of financial results that eased concerns it was lagging rivals in the artificial intelligence (AI) race.
The stock was up 11% after it reported figures covering the second quarter that smashed analysts’ expectations in almost every metric.
The numbers were also seen as justifying chief executive and founder Mark Zuckerberg’s huge spending – long a source of frustration for many Meta investors seeking greater rewards in the short term.
Money latest: Chain offers free sushi for kids over holidays
He told a call with analysts that the company expected to spend up to $72bn (£54bn) this year – and even more in 2026.
At the same time, AI rival Microsoft revealed capital expenditure plans that would see its investment surpass $120bn (£90.5bn) if sustained over the year.
Meta has been investing in people to power its AI-driven growth and infrastructure to grow advertising sales.
Zuckerberg told analysts his pursuit of superintelligence – a hypothetical concept where AI surpasses human intelligence in every possible way – was paying off.
In the second quarter, AI-powered ad recommendations drove about 5% more conversions – a purchase or commitment – on Instagram and 3% on Facebook, the company said.
It helped Meta report revenue of $47.5bn (£36bn) for the three months to the end of June.
Please use Chrome browser for a more accessible video player
Is Trump’s AI plan a ‘tech bro’ manifesto?
Profit per share of $7.14 (£5.38) also easily exceeded analysts’ estimates.
Meta…
