Meta profit misses on AI costs despite revenue beat, shares slide

Investors penalize the social media giant as heavy infrastructure spending and legal charges offset top-line strength, extending a volatile week for the stock.

By Handelsavisen Newsroom · Automated 2026-07-30 01:32 UTC · 1 min read

Meta Platforms reported second-quarter earnings that fell short of market expectations, with net profit declining 14% to $15.8 billion.

The miss was driven by escalating costs associated with its artificial intelligence infrastructure build-out and significant legal charges, even as the company’s revenue figures surpassed analyst estimates.

Meta shares plunged 6% in late trading Tuesday, marking a sharp reversal for a stock that had been performing strongly in recent months.

The results highlight the growing tension between Meta’s aggressive AI investment thesis and near-term profitability pressures.

The market reaction was swift and negative.

Meta shares plunged 6% in late trading Tuesday, marking a sharp reversal for a stock that had been performing strongly in recent months.

This decline follows a previous 5% drop earlier in the week, triggered by reports that the company is considering a multi-billion-dollar stock offering to help finance its AI ambitions.