Meta shares drop 9.4% on 91% free cash flow decline
Business
Meta, the company behind Facebook and Instagram, just saw a record losing streak, down 9.4% in one day.
This came after its latest earnings showed a huge 91% fall in free cash flow, mostly because they plan to spend as much as $145 billion on memory chips and data centers this year.
Investors aren't thrilled, and it's clear Meta is betting big on tech upgrades.
Meta Q2 EPS miss, revenue beats
Meta's second-quarter earnings missed Wall Street's mark: $6.18 per share (expected was $7.14), while revenue of $60.8 billion beat the $60.2 billion expectation.
Its forecast for next quarter also fell short of what analysts hoped for.
Meanwhile, rivals like Microsoft, NVIDIA, and AMD are seeing wins thanks to their moves in AI, making Meta's path forward look even tougher right now.