Meta announced second-quarter revenue and profit that exceeded expectations. Driven by its investments in artificial intelligence, shares surged by over 10%, and the company also unveiled its “superintelligence” vision.
Meta experienced a more than 10% increase in its shares after announcing financial results for the second quarter of 2025 that surpassed expectations. The company’s revenues came in significantly above analyst forecasts. Meta’s net income rose by 36% compared to the same period last year, reaching $18.34 billion.
Meta’s earnings per share were $7.14, beating the anticipated $5.92. Revenues reached $47.52 billion, surpassing the expectation of $44.80 billion. The company’s advertising revenues climbed to $46.56 billion, outperforming Wall Street’s estimate of $43.97 billion.
Strong Future Forecasts
Meta set its revenue guidance for the third quarter in the range of $47.5 billion to $50.5 billion. This figure is higher than analysts’ average forecast of $46.14 billion. The company also updated its total spending estimate for 2025 to between $114 billion and $118 billion. Investments are also accelerating. Meta made $15.1 billion in off-market capital investments in the second quarter. A significant portion of these investments was directed towards Scale AI, a company specializing in data labeling. It’s worth recalling that Scale AI CEO Alexandr Wang was appointed as co-lead of Meta’s new Superintelligence Labs unit.
Meta’s Reality Labs unit, which develops virtual and augmented reality technologies, closed the quarter with a loss of $4.53 billion. Sales remained at $370 million. The number of daily active users across Meta’s family of apps increased to 3.48 billion. This represents an increase of 50 million from the previous quarter. CEO Zuckerberg also took Meta’s AI vision a step further. The company aims to develop “superintelligence” that will surpass human intelligence in all aspects. Zuckerberg advocates for the use of this technology for personal empowerment, not automation.
This substantial rebound in Meta’s performance, particularly given its prior heavy investments in the metaverse, highlights the growing market confidence in its AI strategy. It’s fascinating to see how their focus is now shifting to “superintelligence.” What are your thoughts on their ambitious new vision?
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