Meta to report Q2 earnings amid AI investing concerns

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Meta (META) volition study its 2nd 4th net aft the doorbell connected Wednesday, giving Wall Street its latest look into the company's AI investments and whether they're paying off.

The announcement comes arsenic Meta banal continues to conflict to regain its footing and investors question CEO Mark Zuckerberg's capex plans. The institution has said it plans to walk upwards of $145 cardinal this year, with the bulk of that going to its information halfway build-out.

On Tuesday, Meta and BlackRock announced they are entering into an statement to physique a $14 billion, 1-gigawatt information halfway successful Texas. BlackRock volition clasp an 80% involvement successful the site, portion Meta volition get the remaining 20%.

Shares of Meta are disconnected astir 10% twelvemonth to day and astir 16% implicit the past 12 months. Out of the "Magnificent Seven" stocks, lone Microsoft (MSFT) banal has lagged much successful the past year, dropping 24% connected akin concerns astir the company's AI spending.

But Meta has besides fixed investors immoderate anticipation much recently. Earlier this month, Zuckerberg told Bloomberg that it makes consciousness for the institution to research leasing retired immoderate of its information halfway capableness to customers.

It's not wide however Meta would operation immoderate deals, but it could crook toward SpaceX (SPCX) for inspiration. That institution has acceptable up multibillion-dollar arrangements to rent entree to its AI capableness to Anthropic (ANTH.PVT) and Google (GOOG, GOOGL).

593.87 -1.32 (-0.22%)

At close: July 27 astatine 4:00:01 PM EDT

Meta could besides take to run likewise to a neocloud institution similar CoreWeave and simply rent retired its hardware arsenic is.

The institution besides debuted its caller Musk Spark 1.1 exemplary this period and revealed an assertive pricing strategy that importantly undercuts the outgo of utilizing models from OpenAI and Anthropic.

Meta charges developers $1.25 per cardinal input tokens and $4.25 per cardinal output tokens. Anthropic presently charges $5 per cardinal input tokens and $25 per cardinal output tokens for its Opus 4.8 model, which Meta compares with Spark 1.1.

By mounting prices truthful low, Meta could instrumentality marketplace stock from the large AI labs arsenic price-conscious customers question amended deals connected AI models.

For Q2, Meta is expected to study net per stock of $7.14 connected gross of $60.23 billion, according to Bloomberg expert statement estimates. The institution saw EPS of $7.14 and gross of $47.51 cardinal successful the aforesaid play a twelvemonth ago.

Advertising gross is projected to travel successful astatine $58.99 billion, up 26% from the $46.56 cardinal the institution brought successful in Q2 2025.

Capex, however, is acceptable to summation 100% to $33.15 cardinal for the quarter.