Meta's Q2 results showed strong revenue and ad growth, but the company raised capex guidance and saw free cash flow compress, pressuring the stock after hours. Zuckerberg disclosed that third parties are bidding a "significant premium" for Meta's compute, yet Meta is retaining capacity to build AI products and enterprise services, including a 1GW data-center venture with BlackRock. Near term, the key market input is higher investment intensity and timing risk.
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Meta reported second-quarter results, with revenue of about $60.8 billion up 28% year over year and advertising revenue rising 27%. The company raised its capital expenditure guidance, while free cash flow shrank and the stock fell in after-hours trading. CEO Mark Zuckerberg said he is turning down offers to sell Meta’s compute resources and is working with BlackRock to develop a 1 gigawatt data center.