Meta’s Q2 results looked strong on paper with $7.14 in earnings per share and revenue near $47.5 billion yet the Reality Labs division burned $4.5 billion in the quarter. “Reality Labs posted a Q2 2025 operating loss of $4.5 billion”
https://www.shacknews.com/article/145314/facebook-meta-reality-labs-losses
Advertising remains profitable. Meta stock jumped over 11 % after hours—surging as investors cheered AI strategy despite mounting costs. “Operating margins improved to 43 % even while capital expenses hit $17 billion”
https://www.investors.com/news/technology/meta-stock-q2-2025-earnings-ai-facebook-zuckerberg/
Capital spending could reach $69 billion in 2025 as Reality Labs burns cash and Meta builds AI infrastructure. Smartglasses sales grew but still barely offset the hemorrhaging. Growth in short‑term gains may obscure a cash problem brewing.
In just two quarters, Meta managed to burn over $30B in cash, now down to a humble $12B— reserved for more GPUs, overpriced startups, and bidding wars over engineers. They've been throwing money around without touching their credit line. Cute. But that about to end.
Watch for… pic.twitter.com/69QkTz9Stq
— Kakashii (@kakashiii111) July 30, 2025
Zuckerberg calls superintelligence imminent but cash is finite. Hiring continuing, ad revenue strong. Execution must deliver or the burn will bite.
Behind the beat the real risk is capital depletion under a second act of aggressive expansion. Markets reward vision until they demand returns.
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