Meta Platforms (NASDAQ: META) delivered a stellar second-quarter earnings report, significantly surpassing Wall Street expectations and reinforcing its leadership in both digital advertising and artificial intelligence (AI).
The tech giant reported Q2 revenue of $47.5 billion, marking a 22% year-over-year increase, with earnings per share of $7.14, well ahead of the consensus estimate of $5.88. Meta’s core advertising business remains a key driver, benefiting from enhanced AI-powered targeting and increased user engagement across platforms including Reels and Threads. Ad impressions rose 19%, while the average price per ad increased by 6%, reflecting stronger demand and improved pricing power.
Farhan Badami, Business Development Manager at eToro, commented: “Investors responded enthusiastically, pushing Meta’s stock up by more than 10% in after-hours trading. The rally was fueled by both the earnings beat and a bullish Q3 revenue forecast of up to $49 billion.
Meta’s aggressive AI strategy is bearing fruit. Its Llama model and Meta AI assistant are nearing 1 billion monthly users, signaling widespread adoption. The company’s updated full-year CapEx guidance of $66–72 billion highlights its unwavering commitment to AI infrastructure and innovation—even as it continues to absorb losses from Reality Labs
“Meta is going head-to-head with major AI players like OpenAI and Anthropic,” added Badami. “The company’s recent offers of up to $300 million over four years to top AI researchers show just how serious it is about leading in the race toward superintelligence.”
Despite looming regulatory challenges in the EU and broader global uncertainties, Meta’s performance underscores its ability to deliver strong growth in both revenue and profit, while investing for the future.
“Meta’s core business is thriving, the ad machine is alive and well, and its AI ambitions are clearly resonating with the market,” said Badami. “Operational efficiency and regulatory developments will be important to watch—but there’s no denying the momentum. The stock is now up over 760% from its 2022 lows—it’s Zuck’s world, and we’re just living in it.”
