Meta Platforms Surges on AI Investment Despite Rising Capex

Meta Platforms (META) delivered a robust Q2 2025 earnings beat, with revenue climbing 22% year-over-year to $47.5 billion and EPS jumping 38% to $7.14. Daily active users across its platforms grew 6% to 3.48 billion, while ad impressions and pricing power showed double-digit gains.

The social media giant is aggressively pivoting to AI, with CEO Mark Zuckerberg declaring ambitions to build "personal superintelligence for everyone." This vision comes at a cost—Q2 capital expenditures doubled year-over-year to $17.01 billion, with full-year 2025 guidance raised to $64-$72 billion.

While Meta's Core advertising business continues to mint record profits, the company's massive AI infrastructure buildout suggests a long-term bet on artificial intelligence as the next computing paradigm. The market appears to be rewarding this strategic shift despite near-term margin pressures.