Shares of Meta jumped Thursday after the company reported better-than-expected second-quarter earnings and offered a rosy forecast.Analysts at Baird wrote in a report that Meta's business remains strong, and that it continues to benefit from"years of AI-related investments."Revenue in the period increased 22% to $39.07 billion from $32 billion a year earlier, Meta said late Wednesday. Analysts were expecting revenue of $38.31 billion, according to LSEG.
For the third quarter, Meta expects revenue of $38.5 billion to $41 billion, or $39.75 billion at the middle of the range, topping the average analyst estimate of $39.1 billion."The ways that it's improving recommendations and helping people find better content, as well as making the advertising experiences more effective, I think there's a lot of upside there," Zuckerberg said on the earnings call."Those are already products that are at scale.
Meta said capital expenditures for the year will be between $37 billion and $40 billion. The low end of the range had previously been $35 billion.