Meta’s Q2 Earnings: Strong Revenue Expected, But AI Spending Could Limit Stock Gains

Meta Platforms (META) will report its second-quarter earnings on July 29, with the company well-positioned to deliver another quarter of solid revenue growth. However, while Meta's advertising business remains resilient and is growing at a solid pace, investors are increasingly focused on the soaring cost of Meta's artificial intelligence (AI) ambitions.

Like other Big Tech companies, Meta has been pouring billions of dollars into servers, networking infrastructure, and data centers to expand its AI capabilities. Those investments are helping position the company for long-term growth while putting pressure on margins and raising questions about when AI spending will begin to generate meaningful financial returns.