Meta’s AI-Driven Growth Sparks Stock Surge Amid Strong Q2 Earnings
Meta Platforms (META) shares rallied after the company reported second-quarter results that far exceeded analyst expectations, fueled by strategic investments in artificial intelligence. Revenue climbed 22% year-over-year to $47.52 billion, while earnings per share surged 38% to $7.14. The stock has gained 28% year-to-date, reflecting investor Optimism around Meta's AI-powered ad targeting and content recommendations.
Advertising revenue, which accounts for the bulk of Meta's business, ROSE 22% to $46.6 billion. The company's Reality Labs division, housing its metaverse and AR initiatives, saw a modest 5% increase to $370 million. Meta's AI advancements are driving higher user engagement and ad pricing, reinforcing its dominance in social media monetization.
