Meta shares fell nearly eight percent after the company reported second-quarter earnings that missed the Wall Street profit expectations, despite revenue beating forecasts.
According to The Guardian, Meta posted earnings of $6.18 per share, below analysts' expectations of $7.14, as revenue reached $60.8 billion, ahead of the $60.23 billion forecast.
The company also increased its spending outlook, raising expected annual expenses to between $165 billion and $169 billion.
It said 2026 capital expenditure is now expected to be between $130 billion and $145 billion, reflecting continued investment in artificial intelligence.
Ahead of the results, Meta chief executive Mark Zuckerberg promoted the company's AI strategy in media interviews and a Wall Street Journal opinion article.
He wrote: "As a thought experiment, imagine only one person had a super-intelligent lawyer. I don’t understand why anyone who believes that AI will eliminate most jobs and much of humanity’s relevance would rush to build that future."
The Guardian reported that investors remain concerned about Meta's heavy AI spending and its ability to generate returns.
The company is also facing thousands of lawsuits in the United States alleging its platforms were designed to be addictive and harmful to children.
Meta has denied wrongdoing and continues to invest heavily in expanding its AI business.
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