Meta reported disappointing Q2 earnings with free cash flow plummeting 91% to $784 million due to massive AI infrastructure investments ($130-145 billion capex guidance). Despite CEO Mark Zuckerberg's bold claims about delivering "personal superintelligence to everyone," investors remain skeptical and punished the stock. The company's history of losses in Reality Labs ($80 billion since 2020) has made investors wary of Zuckerberg's grandiose technology bets without clear financial returns.
Axe note: Meta's massive AI spending crushes cash flow, leaving investors wary despite Zuckerberg's bold superintelligence promises.