Meta Stock Surges 11% Post-Earnings, Fueled by AI-Driven Growth

Meta Platforms (META) shares rallied 11% following a stronger-than-expected Q2 2025 earnings report, reversing a month-long slump. The Facebook parent posted a 22% revenue jump to $47.52 billion, powered by AI-optimized advertising and bullish forward guidance.

CEO Mark Zuckerberg's aggressive AI infrastructure investments—including plans for a Manhattan-scale data center—are resonating with investors. Meta now allocates over 30% of revenue to capital expenditures, doubling historical levels, as it positions itself at the forefront of AI-driven digital advertising.

Analysts maintain optimistic price targets between $585 and $803, reflecting confidence in Meta's AI roadmap. The stock has gained 31% since Q1 results, benefiting from tariff relief and Zuckerberg's pledge to spend "hundreds of billions" on AI development.