Meta-storage of results. Zuck touts AI wins. (Live reporting)

Metaplatforms (META) reported second-quarter earnings late Wednesday that easily exceeded analyst expectations. Meta shares recovered in after-hours trading.

↑
X

NOW PLAYING
Here’s how Meta’s AI tools are set to increase revenue in a year of efficiency

Revenue for parent company Facebook and Instagram rose 22% year over year to $39.07 billion in the quarter ended June. Analysts had expected revenue of $38.26 billion for the Menlo Park, California-based company, according to FactSet.

Earnings were $5.16 per share, up 73% from a year earlier. Analysts expected $4.72 per share, according to FactSet.

Meanwhile, Meta expects to post between $38.5 billion and $41 billion in revenue in the third quarter. Before Meta reported its results, analysts forecast revenue of $39.1 billion for the quarter ending in September.

Meanwhile, Meta said it expects between $37 billion and $40 billion in capital expenditures this year. That is more than the previous range of $35 billion to $40 billion.

In after-hours trading, Meta shares are up more than 3%.

Follow Investor’s Business Daily’s live coverage:

4:33 ET

Meta Stock: Zuckerberg touts AI gains

“We had a strong quarter and Meta AI is on track to be the most used AI assistant in the world by the end of the year,” Meta CEO Mark Zuckerberg said in a statement. “We released the first open source frontier AI model, we continue to see good traction with our Ray-Ban Meta AI glasses and we are driving good growth in our apps.”

Meta shares now up almost 6%

Meta Stocks: Down 6% in July

In today’s stock market, Meta stock is up 2.2% at 473.41 in recent action.

But it was a rough month of July overall for Meta stock. Shares are down about 6% since June 30 and are down more than 12% from the all-time high of 542.81 on July 5.

Meta’s recent decline came as the broader group of Magnificent Seven stocks struggled. Investors have been switching from better-performing big tech stocks to other markets after cool inflationary pressures raised hopes of a September rate cut.

Meta shares also fell after Google reported lower-than-expected ad revenue for its YouTube division last week.

Meta stocks remain more than 3% below their 50-day moving average. Shares fell below the 50-day line on heavy volume earlier this month.

Shares have also fallen well below the cup-with-handle buy point of 514.01, which marked a potential breakout on June 27. Meanwhile, Meta stock’s relative strength line has fallen to 86 from 95 (out of 99) earlier this month.

Meanwhile, the IBD inventory check The tool shows that Meta stock has an IBD Composite Rating of 85, compared to the best possible 99. The score means that Meta stock is currently in the top 15% of stocks in terms of key performance metrics and technical strength. But the top growth stocks typically score above 90.

You might also like:

Is Meta Stock a Buy Now?

These are the best growth stocks to buy and watch

Amazon reached this milestone in the Andy Jassy era. What’s next?

AI stocks: Tech giants, cloud titans and chipmakers battle for an edge

Meta gets price target hikes as Facebook parent struggles with Mag 7 ‘fatigue’