Meta Stock Rebounds on Amazon's Cloud Boost
Meta Platforms' stock rebounded by approximately 1.9% in Friday's session after Amazon's cloud results improved investor sentiment towards large AI infrastructure programs.
The tech company, which operates Facebook, Instagram, and WhatsApp, had fallen sharply following its own earnings report as investors assessed higher capital expenditure and weaker free cash flow.
However, Amazon's contrasting rally suggested that markets may accept elevated spending when accompanied by accelerating cloud revenue.
Meta reported second-quarter revenue of around $60.8 billion, representing a 28% growth rate. However, earnings were pressured by legal and severance expenses, while free cash flow declined to $784 million from $8.55 billion in the previous year.
The company narrowed its 2026 capital-expenditure forecast to between $130 billion and $145 billion.