Meta stock falls 5% as capex outlook climbs to $145 billion

Meta shares fell about 5% in initial after hours trading Wednesday after the company reported lower quarterly profit and raised the lower end of its capital spending outlook. The stock had already closed the regular session down around 1% before extending its decline following the release. Meta reported second quarter revenue of $60.8 billion, up 28% from $47.5 billion a year earlier and slightly above Wall Street expectations of around $60.2 billion. However, diluted earnings fell 13% to $6.18 per share, below analysts’ expectations of about $7.19. Net income declined 14% to $15.8 billion, while income from operations fell 8% to $18.8 billion. The decline came as Meta’s total costs and expenses jumped 55% to $42 billion. The figure included $2.4 billion in charges related to legal proceedings and $1.18 billion in severance expenses connected to the company’s May workforce reduction. Meta’s operating margin dropped to 31% from 43% during the same quarter last year, reflecting the growing cost of its artificial intelligence infrastructure and other investments. Capital expenditures reached $31.08 billion during the quarter, almost double the $17.01 billion spent during the same peri...