Meta cash flow craters as Mark Zuckerberg doubles down on AI spending
Meta Platforms reported a 91% drop in second-quarter free cash flow on Wednesday, underscoring the financial strain of the social media giant’s costly AI buildout amid an uncertain payoff.
The Facebook and Instagram parent company reported free cash flow of $784 million in the second quarter ended June 30, down from $8.55 billion a year earlier, sending its shares down 10% in extended trading.
Meta’s cash flow wipeout echoed Alphabet’s, which last week reported its first-ever cash-flow-negative quarter, stunning even the most bullish of Wall Street investors who sold off the Google owner’s stock.
