Meta has just reported a second quarter revenue of $60.80 billion. Though this figure represents another record-breaking year-on-year increase of about 28%, shares are reportedly down by 10%. Seems like the AI money pits may be shifting beneath Meta's feet.
The company reported it had $784 million in free cash flow by the end of Q2 2026, but that represents a 91% year-on-year decrease compared to the $8.55 billion it had to throw around last year. Where did all that money go? Questionable spending on the company's VR and AR division, Reality Labs, is only part of the story. The rest can be attributed to Meta's AI infrastructure buildout.
