Meta’s AI bets are swallowing almost all its free cash flow
By
Pranav Dixit
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Meta’s AI bets are swallowing almost all its free cash flow
Meta's AI investments cut free cash flow by 91%, while ad revenue rose 27% as AI boosts ad targeting and content recommendations.
TL;DRAI
Meta's Q2 free cash flow crashed 91% as AI capex hit $31B, consuming nearly all operating cash. AI boosts ad revenue 27%, but the 10% stock drop signals Wall Street now rewards spending discipline over capex aggression.
787 words~4 min read
