Meta Platforms Saw Free Cash Flow Plunge 91% to Just $784 Million as Artificial Intelligence (AI) Spending Ballooned. Here's Why That Should Worry Investors.

Meta's free cash flow collapsed 91% year-over-year to $784 million in Q2 as capital expenditures surged to $30 billion for AI infrastructure development. The company is aggressively investing in custom silicon, data centers, and hardware like Ray-Ban AI glasses, but this spending spree is outpacing profit growth. The analyst recommends caution, suggesting investors wait for evidence that AI investments translate into higher profit margins and revenue growth before buying Meta stock aggressively.