Meta jumps on solid earnings beat, but warns of 'significant' cap-ex expansion

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Earnings Per Share News

Susan Li,Meta

Meta shares climbed higher in trading Thursday, after the company reported better than expected second quarter earnings Wednesday.

"While we do not intend to provide any quantitative guidance for 2025 until the fourth quarter call, we expect infrastructure costs will be a significant driver of expense growth next year as we recognize depreciation and operating costs associated with our expanded infrastructure footprint," CFO Susan Li said in a statement.

Last week, CEO Mark Zuckerberg announced Meta’s latest open-source large language model called Llama 3.1. What’s more, the Facebook founder said the industry should focus on open-source AI rather than closed-source models like OpenAI’s ChatGPT. In Q2, Meta reported that the segment lost some $4.49 billion, slightly below expectations of $4.53 billion. It lost $3.8 billion in Q1. The division has also been plagued by turnover and a lack of clear vision, adding to Reality Labs’ troubles,

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