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.

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. What is Meta spending capex on? Expand NASDAQ : META Meta Platforms Today's Change ( 2.51 %) $ 14.86 Current Price $ 606.96 Key Data Points Market Cap $1.5T Market cap calculated using publicly traded shares outstanding only. Day's Range $ 593.65 - $ 607.19 52wk Range $ 520.26 - $ 796.25 Volume 4.8M Avg Vol 18.1M Gross Margin 81.75% Dividend Yield 0.35%Why falling free cash flow could be a bad sign for MetaWhen capex grows faster than a company's profits, free cash flow inevitably shrinks.