META: Metastock Rises 7% on AI Hype, while Metaverse Losses Reach $40 Billion

While quietly grieving a massive loss in the metaverse, Meta CEO Mark Zuckerberg has moved his focus to new AI tools.

Meta stock META gained almost 7% in after-hours trade after the company of Facebook and Instagram posted better-than-expected Q2 earnings. For the quarter, Meta contributed $32 billion in sales, increasing 11% year on year and above the $31 billion consensus. Profits came in at $2.98 per share, exceeding expectations of $2.89.

According to Meta CEO Mark Zuckerberg, AI-enhanced efforts to personalise feeds are "already paying off." Zuck's previous big gamble, metaverse, cost him $40 billion in losses, with more on the way. However, investors choose to disregard this and instead focus on the highly promising AI technology.