META Does ‘Betta’ on Q2 Earnings, Cautions on Capex “Significantly Higher” in 2025

Meta Platforms Inc. (META) announced Q2 financials as revenue surpassed expectations by 2%, while EPS was 9% higher than anticipated. The company also guided Q3 revenue at the midpoint, which is 2% above Street expectations, despite facing more challenging comparisons and foreign exchange impacts. Key takeaways highlighted strong advertising demand across various sectors, with expectations for these trends to persist in the second half of the year. There was also discussion about potential market share gains from Google and others.

Pricing was a standout factor in Q2, although the growth in impressions slowed. Analysts were particularly positive about the engagement and monetization benefits from core AI investments. Continued momentum was noted in Reels, WhatsApp, and Threads, along with extensive discussion on long-term AI initiatives.

Meta’s strong execution was recognized, offsetting some concerns about increased scrutiny on big tech capital expenditures. The company raised its 2024 capex outlook by $2 billion, bringing it to $37 billion-$40 billion, and indicated a significant year-over-year increase in capex for 2025.