On Thursday, Meta Platforms, Inc. (META.US) shares plummeted over 9% in early trading, as the company's latest quarterly results sparked concerns over heavy AI investment costs and disappointing profit figures.

According to the report for the second quarter ended June 30, 2026, revenue came in at $60.8 billion, topping the $60.17 billion consensus estimate. However, earnings per share of $6.18 fell short of the $7.22 analysts had expected. Net income dropped 14% year over year, sliding from $18.34 billion in the same period last year to $15.85 billion.

While Meta's core advertising business remained strong, posting a record high in revenue, the bottom line was battered by massive spending on artificial intelligence and one-time charges. The company also issued a revenue guidance that missed market expectations, while its cash reserves shrank significantly.

Investors reacted swiftly, sending the stock sharply lower as the market weighed the long-term returns of Meta's AI ambitions against the immediate pressure on profitability.