Meta Platforms reported record revenue of $60.8 billion for the second quarter, marking 28% year-over-year growth. However, the company's updated AI spending plans and a significant drop in free cash flow to less than $1 billion unsettled investors.

Meta revised its minimum capital spending forecast upwards to $130 billion for the year, an increase of $5 billion from its previous projection. While net income for the April-to-June period was $15.8 billion, it was lower than analysts anticipated, and net income fell 14% from the previous year. The company's stock experienced a decline of over 6% in after-hours trading.

Further concerns arose from Meta's revenue guidance for the current quarter, which at its midpoint was below the roughly $63 billion expected by analysts. The company is heavily investing in AI, allocating billions for chips, data centers, and talent, including a recent partnership to raise at least $12 billion for a Texas data center.