Meta's shares fell approximately 6% after the company reported disappointing earnings and forecasts, raising investor concerns about its significant investments in artificial intelligence. The social media group projected revenues between $61bn and $64bn for the current quarter, falling below analysts' estimates.

While second-quarter sales reached $60.8bn, net income decreased by 14% to $15.8bn, significantly missing analyst expectations of $18.5bn. This decline occurred as Meta's costs and expenses surged by 55% to $42bn. Chief executive Mark Zuckerberg defended the AI spending, stating it was "accelerating every major part of our core business."

The company has increased its capital expenditure forecast for 2026 to between $130bn and $145bn. Meta also raised its total expense outlook to $165bn-$169bn, citing $2.4bn in legal charges. Despite efforts to catch up in AI, with new models like Muse Spark developed by TBD Lab, Meta's AI capabilities still lag behind rivals such as OpenAI and Google. Zuckerberg is betting these AI investments will enhance advertising revenue and create new income streams, including potential cloud-computing services.