Meta shares drop as Q2 profit declines due to legal expenses and severance costs
Summary
Meta reported a drop in its second-quarter profit due to high legal and layoff-related costs, even though its revenue grew more than expected. The company continues to invest in artificial intelligence and expects revenue to rise moderately in the next quarter.Key Facts
- Meta’s second-quarter profit was $15.85 billion, down 14% from last year’s $18.34 billion.
- Revenue increased 28% to $60.8 billion, which beat analysts’ average estimate of $60.22 billion.
- Legal expenses and severance costs from layoffs contributed $3.58 billion to total expenses.
- Meta laid off about 8,000 employees, with total staff at 75,472 as of June 30.
- Daily active users on Facebook, Instagram, WhatsApp, and Messenger grew 3% to 3.6 billion.
- Meta forecasts third-quarter revenue between $61 billion and $64 billion, slightly below analysts’ expectations.
- Meta shares fell 4.2% in after-hours trading following the earnings report.
- CEO Mark Zuckerberg emphasized AI as a key driver for current and future growth.
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