Meta's Q2 free cash flow crashes 91% as Zuckerberg doubles down on AI capex

Meta reported free cash flow of $784M in Q2 (ended June 30), down 91% from $8.55B a year earlier, as aggressive AI spending hit margins and sent shares down 10% in extended trading. Consumer startups should read this as: the FAANG efficiency playbook has shifted. Profitability is being traded for AI moat-building. If you're a consumer app trying to compete against these players, your only edge is vertical focus or data network effects they can't easily copy.

Source: ET Tech ↗