{"id":718040,"date":"2026-07-29T22:44:09","date_gmt":"2026-07-29T22:44:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/718040\/"},"modified":"2026-07-29T22:44:09","modified_gmt":"2026-07-29T22:44:09","slug":"meta-misses-earnings-forecasts-after-zuckerberg-media-push-to-promote-ai-meta","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/718040\/","title":{"rendered":"Meta misses earnings forecasts after Zuckerberg media push to promote AI | Meta"},"content":{"rendered":"<p class=\"dcr-1s160rg\">Mark Zuckerberg\u2019s media spree touting the positive effects of artificial intelligence did little to cushion the blow of Meta\u2019s second-quarter earnings, which sent its stock tumbling on Wednesday.<\/p>\n<p class=\"dcr-1s160rg\">In a <a href=\"https:\/\/www.wsj.com\/opinion\/the-ai-future-is-for-everyone-a0c24e20\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">Wall Street Journal<\/a> op-ed published on Tuesday, the Meta chief executive expressed his optimism for a world where everyone has access to a super-intelligent machine.<\/p>\n<p class=\"dcr-1s160rg\">\u201cAs a thought experiment, imagine only one person had a super-intelligent lawyer,\u201d Zuckerberg wrote. \u201cHe would have an unfair advantage in court. That would lead to a worse society. But now imagine everyone has a super-intelligent lawyer. Justice would be carried out much more fairly and efficiently than it is today.\u201d<\/p>\n<p class=\"dcr-1s160rg\">But Zuckerberg\u2019s message of AI optimism wasn\u2019t enough to alleviate Wall Street\u2019s initial reaction to Meta\u2019s second-quarter earnings. The company\u2019s stock slid nearly 8% after reporting weaker-than-expected results.<\/p>\n<p class=\"dcr-1s160rg\">Meta posted $6.18 in earnings per share, missing Wall Street expectations of $7.14, according to Bloomberg consensus estimates. Revenue was $60.8bn, beating analyst predictions of $60.23bn.<\/p>\n<p class=\"dcr-1s160rg\">The company also raised the lower end of its expected expenses and spending for the year. Susan Li, Meta\u2019s chief financial officer, said the company had $2.4bn in \u201ccharges related to legal proceedings\u201d in the second quarter, raising total expenses to the range of $165bn to $169bn, up from $162bn to $169bn.<\/p>\n<p class=\"dcr-1s160rg\">And it expects 2026 capital expenditures to range from $130bn to $145bn, up from $125bn to $145bn. Meta has previously said a big portion of its capex is earmarked for its AI investments.<\/p>\n<p class=\"dcr-1s160rg\">Zuckerberg\u2019s PR blitz comes as investors and analysts look for the company\u2019s justification of its massive spending on AI infrastructure, a concern that has contributed to the 10% drop in the company\u2019s share price year over year.<\/p>\n<p class=\"dcr-1s160rg\">Big tech companies such as Meta, which have increasingly burned through free cash flow, need to sell consumers and Wall Street on the promise of AI to defend their spending. The stock market\u2019s response to Zuckerberg\u2019s remarks on the company\u2019s earnings call, scheduled for later this evening, could reveal whether his messaging is enough to ease investor concerns.<\/p>\n<p class=\"dcr-1s160rg\">Meta has struggled to make an AI model to rival OpenAI or Anthropic, but it plans to start a cloud business to sell AI compute, monetizing some of its immense AI investments, Bloomberg reported this month. The <a href=\"https:\/\/bloomberg.com\/news\/articles\/2026-07-01\/meta-is-building-a-cloud-business-to-sell-excess-ai-compute\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">report<\/a> was one of the few things to boost investor confidence this year, spurring a spike in the stock\u2019s long decline.<\/p>\n<p class=\"dcr-1s160rg\">The day before earnings, Zuckerberg echoed his belief in decentralizing AI and creating an era of \u201cpersonalized super-intelligence\u201d where everyone has an AI assistant tailored to their needs and beliefs, in interviews with the <a href=\"https:\/\/www.nytimes.com\/2026\/07\/28\/technology\/mark-zuckerberg-meta-ai.html\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">New York Times<\/a> and the Financial Times.<\/p>\n<p class=\"dcr-1s160rg\">Though he did not specify how Meta plans to approach this, based on the company\u2019s history, personalization would likely require consumers to hand over even more of their data. Still, Zuckerberg said it was better than his competitors\u2019 centralized models.<\/p>\n<p class=\"dcr-1s160rg\">\u201cI think it is literally impossible to have a single benevolent super-intelligence that is simultaneously aligned with everyone at once,\u201d Zuckerberg told the New York Times.<\/p>\n<p class=\"dcr-1s160rg\">Meta may be \u201ctrying to do too much at once\u201d, Mike Proulx, vice-president and research director at advisory firm Forrester Research, said.<\/p>\n<p class=\"dcr-1s160rg\">\u201cEvery one of Meta\u2019s major growth lanes now carries a trust toll,\u201d Proulx said in a statement before listing Meta\u2019s new projects. \u201cAI-generated advertising raises new brand-control concerns, smart glasses create new privacy questions, youth safety remains under intense scrutiny and employee-tracking initiatives spark data-collection backlash.\u201d<\/p>\n<p class=\"dcr-1s160rg\">Zuckerberg\u2019s narrative speaks to Meta\u2019s need to set itself apart from competitors \u2013 many of whom he said are sending messages filled with \u201cdoom\u201d about the future of AI.<\/p>\n<p class=\"dcr-1s160rg\">\u201cI don\u2019t understand why anyone who believes that AI will eliminate most jobs and much of humanity\u2019s relevance would rush to build that future,\u201d Zuckerberg wrote in the WSJ.<\/p>\n<p class=\"dcr-1s160rg\">Still, Meta\u2019s attempt to create a positive message around its AI systems may fall flat, said eMarketer senior analyst Minda Smiley.<\/p>\n<p class=\"dcr-1s160rg\">\u201cIt\u2019s not surprising that Zuckerberg wants to come out with a more cohesive message around the company\u2019s AI ambitions, especially as Meta tries to carve out its own lane,\u201d Smiley said in a statement.<\/p>\n<p class=\"dcr-1s160rg\">\u201cBut the optimistic, positive tone he\u2019s striking stands in stark contrast to the negative sentiment that\u2019s building toward social media companies over claims that they\u2019ve harmed and addicted kids. This juxtaposition could make it more difficult for Meta to build credibility in an area where it\u2019s already a laggard.\u201d<\/p>\n<p class=\"dcr-1s160rg\">While Zuckerberg makes an argument for Meta\u2019s open-source approach to AI development, the company is being forced to answer for its previous practices developing its products and the effects they have had on users.<\/p>\n<p class=\"dcr-1s160rg\">Meta is facing about 3,000 lawsuits alleging that it deliberately creates addictive products leading to the harm of children. The suits have been brought by families, school districts and states\u2019 attorneys general. Forty-two states have sued Meta in state courts, with Tennessee\u2019s case currently at trial. A separate federal lawsuit brought by 29 attorneys general goes to trial in California next month.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThe shifting regulatory environment is also a major Meta risk,\u201d said Proulx. \u201cPolicymakers are more focused on youth wellbeing, addiction and platform safety \u2026 Youth restrictions will affect who Meta can reach. That\u2019s a big problem for a company that depends on ad revenue.\u201d<\/p>\n<p class=\"dcr-1s160rg\">The lawsuits not only call Meta\u2019s corporate practices into question; they also come at a financial cost. The company has already <a href=\"https:\/\/www.theguardian.com\/technology\/2026\/mar\/26\/us-court-social-media-meta-youtube\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">suffered damaging losses<\/a>, with two separate juries finding Meta liable for harming children and awarding plaintiffs millions in damages. Lawyers for the families, schools and lawmakers say they will not stop seeking high-cost damages until Meta changes the design of its products.<\/p>\n<p class=\"dcr-1s160rg\">Dara Kerr and Nick Robins-Early contributed reporting<\/p>\n","protected":false},"excerpt":{"rendered":"Mark Zuckerberg\u2019s media spree touting the positive effects of artificial intelligence did little to cushion the blow of&hellip;\n","protected":false},"author":2,"featured_media":718041,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":["post-718040","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/718040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=718040"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/718040\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/718041"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=718040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=718040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=718040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}