Meta cash flow craters as Mark Zuckerberg doubles down on AI spending
Meta Platforms reported a 91% drop in second-quarter free cash flow to $784 million, down from $8.55 billion a year earlier, as the company invests heavily in AI amid uncertain returns. This decline, which led to a 10% drop in shares during extended trading, mirrors Alphabet's recent cash-flow-negative quarter, raising concerns among investors. CEO Mark Zuckerberg defended the spending, asserting that personal AI agents could become a significant consumer business despite the immediate financial strain.