Why Meta’s free cash flow crashed 91% despite revenue jumping 28%
Meta is spending more money than ever to build its artificial intelligence (AI) future, and that heavy investment is now starting to show in its financial results.
The Facebook and Instagram parent posted a steep decline in free cash flow for the second quarter, adding to concerns over whether its multibillion-dollar AI bet will deliver the returns investors are hoping for. Although the company’s advertising business continued to bring in strong revenue, the soaring costs worried investors, pushing Meta’s shares down 10% in after-hours trading.
