Facebook parent Meta delivers strong quarter, sending shares soaring

Meta Platforms beat Wall Street estimates for second-quarter revenue on Wednesday and issued a rosy sales forecast for the September quarter, signaling confidence that robust digital ads spending can cover the cost of its AI investments.

Shares of the company rose 8% after the bell.

The Facebook and Instagram parent, headed by Mark Zuckerberg, expects third-quarter revenue of $38.5 billion to $41 billion, largely above analysts’ average estimate of $39.14 billion, according to LSEG data.

Net income jumped 73% to $13.5 billion. Revenue rose 22% to $39.07 billion in the second quarter, beating estimate of $38.31 billion.

Meta said it expects full-year capital expenditures in the range of $37 billion to $40 billion, raising the lower end from $35 billion earlier. It maintained the total expenses outlook at $96 billion to $99 billion.