Meta’s revenue surges to $64.6 billion, but billions in settlements and skyrocketing AI spending turn screws on profit, free cash flow

Meta achieved revenue of $64.6 billion, surpassing expectations. However, profit and free cash flow are under pressure due to billions in settlements and skyrocketing AI spending, with capex nearly doubling from last year. This surge in AI investment led to Meta's first negative free cash flow in over a decade. Despite these immediate financial strains, the company maintains substantial reserves and anticipates long-term promise through potential AI-driven revenue growth to offset current expenditures.