Meta Shares Surge 12% As Ad Revenue Beats And AI Investment Gains Momentum

Meta Platforms (NASDAQ:META) shares soared roughly 12% Thursday after the company posted stronger-than-expected second-quarter results, boosted by robust ad sales and growing optimism over its AI initiatives.

Revenue rose 22% year-over-year to $47.5 billion, while net income reached $18.3 billion, both beating Wall Street expectations. Analysts noted an 11% rise in ad impressions and a 9% increase in ad pricing as key drivers of the performance.

Family daily active users across Meta platforms, including Instagram and WhatsApp, also increased during the period.

For the third quarter, Meta forecasted revenue growth of 17% to 24% versus the same period last year, while warning of tougher comparisons in Q4.

Capital expenditures for 2025 are now projected at $66 billion to $72 billion, slightly raised from previous guidance, with early 2026 spending estimated around $100 billion. Analysts expect 2026 capex at $80 billion.

CEO Mark Zuckerberg reaffirmed AI as a strategic focus, highlighting its impact on advertising and user engagement. Meta recently acquired Scale AI for $14 billion and has expanded its AI research team to accelerate innovation.