Meta Platforms Saw Free Cash Flow Plunge 91% to Just $784 Million as Artificial Intelligence (AI) Spending Ballooned. Here's Why That Should Worry Investors.
Meta's capital expenditure budget continues to surge as the company dumps more money into its AI ambitions.
Overview
Over the last few years, Meta Platforms (NASDAQ: META) has ramped up capital expenditures (capex) aggressively in pursuit of artificial intelligence (AI) leadership. Smart investors understand that higher spending locks up cash that would otherwise flow to shareholders. This relationship creates a clear tension between long-term bets and near-term liquidity.
During the second quarter, Meta poured $30 billion into capex and watched free cash flow collapse 91% year over year to just $784 million. Let's dig into why this figure should give any investor focused on cash flow some hesitation.
Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.
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