Meta’s Q2 Earnings Hinge on AI Spending as Stock Shows Volatility

Meta Platforms faces a pivotal moment as it prepares to release Q2 earnings, with Wall Street scrutinizing its aggressive AI investments. The stock has surged 31% since April's strong Q1 results but shows signs of cooling, currently trading at $717.73 after retreating from its June 30 peak of $747.90.

Mark Zuckerberg's commitment to spend "hundreds of billions" on AI infrastructure—including a Manhattan-scale data center—has drawn mixed reactions. While the 22% year-to-date gain suggests investor approval, recent 2.45% pullback indicates market hesitation ahead of earnings.

The earnings report will serve as a litmus test for whether Meta's AI ambitions justify its valuation. Analysts await concrete metrics on ROI from AI advertising initiatives and infrastructure spending.