Meta misses earnings forecasts, stock falls despite Zuckerberg’s AI media push

Meta Platforms reported weaker-than-expected second-quarter earnings on Wednesday, sending its stock tumbling nearly 8%. Earnings per share came in at $6.18, missing the consensus estimate of $7.14, according to Bloomberg. Revenue reached $60.8bn, slightly above the forecast of $60.23bn.

CEO Mark Zuckerberg had embarked on a public relations blitz in the days leading up to the earnings release, publishing op-eds and giving interviews promoting the positive impact of artificial intelligence. In a Wall Street Journal piece, he envisioned a world where everyone has a super-intelligent lawyer, improving justice. He also advocated for decentralized AI, stating that a single benevolent super-intelligence aligned with everyone is impossible.

However, investors remain focused on Meta’s soaring costs. The company raised its full-year expense guidance to $165bn–$169bn and capital expenditure for 2026 to $130bn–$145bn, largely due to AI investments. The second quarter included $2.4bn in legal charges. Meta faces roughly 3,000 lawsuits alleging it deliberately designs addictive products that harm children, with several cases already resulting in multimillion-dollar damages.

Analysts note that Zuckerberg’s optimistic message may conflict with growing public scrutiny over social media’s impact on youth. “The optimistic tone stands in stark contrast to the negative sentiment building toward social media companies over claims they’ve harmed kids,” said eMarketer analyst Minda Smiley. Meta’s attempt to differentiate itself through an open-source AI model may struggle as it battles regulatory risks and trust deficits.