META: Meta Stock Jumps 7% on AI Hype but Metaverse Losses Pile to $40bn

Meta CEO Mark Zuckerberg has shifted his attention to emerging AI tools while quietly nursing a huge loss in the metaverse.

• Meta stock META shot up about 7% in after-hours trading after the Facebook and Instagram owner reported better-than-expected Q2 results. For the quarter, Meta added $32bn in revenue, up 11% year-over-year, and above consensus of $31bn. Profits arrived at $2.98 a share, topping forecasts of $2.89.
• Meta CEO Mark Zuckerberg said that AI-boosted efforts to personalize feeds were “already paying off.” Zuck’s previous heavy bet, metaverse, topped $40bn in losses and more are likely coming. But investors chose to ignore that and focus instead on the highly promising AI tech, first touted in the Q1 update, as the next big revenue generator.
• Looking ahead, Meta expects even higher revenue figures. For the current quarter, the big tech giant is aiming to scoop up revenue of $32bn to $34.5bn. Full-year total expenses are projected to land between $88bn and $91bn. Meta stock has soared this year, adding more than 140% to its valuation.