Meta stock surges after Q2 results blow past expectations despite heavy AI spending

Meta’s artificial intelligence spending spree appears to be paying off with investors, who sent the company’s stock soaring after hours on Wednesday following a blowout quarterly earnings report.

The Menlo Park, California-based company easily beat Wall Street’s expectations for the second quarter, helped by higher advertising revenue and a growing user base on its flagship social media platforms. The money is helping to fund the company’s massive investments in AI development and hiring top talent at eye-popping compensation levels.