Meta tumbles premarket as AI spending takes a toll on free cash flow

Shares are down about 12% year to date.

"Meta still has a crucial role to play in the AI world, but it is still finding its way somewhat and that is why we see both costs and revenues looking a little volatile" - Ben Barringer, head of technology research at Quilter Cheviot.

Meta shares plunge 8.5% in premarket trading after the company recorded a 91% fall in free cash flow, reflecting the impact of heavy AI spending.

Q2 free cash flow came in at $784 mln, down from $8.55 bln a year earlier.