Meta's Earnings Beat Sends Its Stock Higher as Zuckerberg Highlights AI Initiatives

Meta Platforms (META) reported second-quarter net and gross that hit analysts' estimates, sending its banal higher successful extended trading Wednesday.

The institution reported second-quarter gross of $39.07 billion, a 22% jump year-over-year, and supra analysts' estimates compiled by Visible Alpha. Net income came successful astatine $13.47 cardinal aliases $5.16 per share, up 73% from nan aforesaid play a twelvemonth earlier, besides up of projections.

Meta's Strong Quarter Comes Amid AI Push

"We had a beardown quarter, and Meta AI is connected way to beryllium nan astir utilized AI adjunct successful nan world by nan extremity of nan year," Meta CEO Mark Zuckerberg said, highlighting nan company's advances successful artificial intelligence (AI).

"We've released nan first frontier-level unfastened root AI model, we proceed to see good traction pinch our Ray-Ban Meta AI glasses, and we're driving bully maturation crossed our apps," Zuckerberg added.

Meta recently released Llama 3.1, its astir capable open-source AI model yet, successful its efforts to compete pinch nan likes of Microsoft-backed (MSFT) OpenAI, Alphabet's (GOOGL) Google, and Amazon-backed (AMZN) Anthropic.

The institution besides lifted nan little extremity of its outlook for full-year capital expenditures to $37 cardinal from $35 cardinal arsenic Meta invests successful AI, pinch nan precocious extremity unchanged astatine $40 billion.

Meta said it expects gross successful nan 3rd 4th of betwixt $38.5 cardinal and $41 billion, astir successful statement pinch analysts' projections.

Shares of Meta were up complete 5% to $499.47 successful extended trading arsenic of 5:10 p.m. ET Wednesday pursuing nan company's net release.