Shares in Facebook parent Meta declined in after-hours trading on Wednesday after it reported a 91 percent decline in free cash flow, an indication of the financial strain on the company from its generous spending on AI infrastructure such as data centres and GPUs.
Free cash flow for the second quarter was $784 million (£586m), compared to $8.55bn for the same quarter a year earlier, Meta said.
Google parent Alphabet similarly said last week that it fell into negative free cash flow – its remaining liquidity after paying for operations – fell into negative territory for its first time as a public company, helping spur a sell-off in tech shares that extended into this week.
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