Shares of Meta Platforms rose sharply in pre-market trading Thursday, climbing more than 11 percent after the company announced plans to double its AI investment in 2025. The social media and technology giant is preparing to allocate up to $72 billion toward data centers, servers, and AI-focused hiring, reflecting its aggressive push to lead the next phase of computing innovation.
The increase in AI spending marks a significant expansion of Meta’s infrastructure strategy. The company detailed two key projects: Prometheus in Ohio, which is expected to reach 1 gigawatt of computing power by 2026, and Hyperion in Louisiana, projected to scale to 5 gigawatts. These initiatives have sparked concern among local communities, particularly regarding environmental impact and water resource consumption, with reports already highlighting water shortages near Meta’s existing facilities in Georgia.
Meta’s second-quarter earnings surpassed market expectations, with revenue rising 22 percent year-over-year to $47.52 billion. Analysts surveyed by FactSet had anticipated $44.81 billion. Adjusted earnings per share were $7.14, a 38 percent increase from the same quarter last year, and well above the consensus estimate of $5.88. The company projects third-quarter revenue between $47.5 billion and $50.5 billion, ahead of previous forecasts.
Meta doubles down on AI with major 2025 infrastructure investments
The company reaffirmed its intention to scale capital spending in 2026, with forecasts suggesting expenditures may climb to $100 billion. Total expenses for 2025 are expected to reach $116 billion, slightly above the $115 billion projected earlier this year. Meta is also evaluating potential co-financing opportunities for future data center developments.
Despite continued investment losses in its metaverse division, Reality Labs, which posted a $4.53 billion operating loss in the quarter, Meta’s core advertising business remains strong. Advertising contributed 98 percent of the company’s revenue, with a 9 percent year-over-year increase in average price per ad. Revenue from Reality Labs rose 5 percent to $370 million, while Meta’s operating income grew 37 percent to $20.4 billion.
User engagement across apps fuels advertising strength
Meta’s user engagement also grew steadily. The number of daily active people across its Family of Apps, which includes Facebook, Instagram, Messenger, and WhatsApp, increased 6 percent to 3.48 billion. This level of user engagement continues to support the company’s advertising performance and broader platform growth.
Chief Executive Mark Zuckerberg outlined Meta’s long-term vision in a statement, emphasizing a commitment to “personal superintelligence” as a transformative force for the future. He described AI as the foundation for Meta’s next phase of expansion, reinforcing the company’s decision to invest at scale.
As of Thursday morning, Meta shares were trading at $773.53, reflecting investor confidence in the company’s strategic direction. The stock has gained 19 percent year-to-date and is up over 50 percent in the past 12 months. – By Content Syndication Services.