Meta shares plummeted 10% in after-hours trading Wednesday after the company posted quarterly results that missed expectations, with free cash flow collapsing to just $784 million compared to an average of $12 billion over the previous eight quarters. Costs surged 55% while capital expenditures reached $31.1 billion in the quarter, consuming nearly all of the company’s $31.9 billion in operating cash flow. Despite this, second-quarter revenue grew 28% year-over-year, beating forecasts, though operating income fell 8% to $23.4 billion. CEO Mark Zuckerberg hinted that Meta is considering renting its computing infrastructure to external customers but emphasized that selling AI services would yield significantly higher margins than simply selling compute.
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