Meta Platforms Q2 Earnings: An AI Dud Could Send Shares Crashing (Rating Downgrade)

Summary:

  • Meta Platforms is set to report its Q2 earnings on July 31.
  • A ramp up of investments towards artificial intelligence technology may impact cash flow and margins.
  • We see risks tilted to the downside for the stock.

Bear Market

DNY59

Anticipation is building for Meta Platform’s (NASDAQ:META) (NEOE:META:CA) second-quarter earnings report, set to be released on July 31 after the market close. Shares of the social media giant have surged over the past year, but are struggling to


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in META over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information contained herein represents the personal opinions and views of Dan Victor only and is intended for informational and/or educational purposes. It should not be construed as a specific recommendation or solicitation to buy or sell any security or follow any particular investment strategy. Please consult with your financial advisor before making any investment decisions.

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