Meta Reports Increased Expenses and Declining Free Cash Flow

Meta's revenue for the quarter reached $60.8 billion, while operating expenses increased to $42 billion. Consequently, operating profit fell by 8%, and operating margin decreased from 43% to 31%. The company's free cash flow shrank from $8.55 billion to less than $1 billion. Additionally, Meta has raised its expense forecast for the year, raising concerns about the efficiency of investments in AI infrastructure and rising costs. The market responded with a decline in Meta's stock price by 8-10%, reflecting investor concerns over the company's financial metrics and future prospects.