Meta reported second-quarter revenue of about $60.8 billion, slightly above Wall Street expectations, as its core advertising business continued to grow. The problem is not that Meta’s advertising business is weakening. Its AI returns therefore depend heavily on better engagement, stronger advertising results and future products such as business agents, smart glasses and Meta AI. Meta must now prove that its historic AI spending can translate into stronger earnings rather than simply higher infrastructure costs. Until that evidence becomes clearer, the stock could remain vulnerable despite the continued strength of its advertising business.