Meta shares plunge 10% as free cash flow crumbles; Zuckerberg hints at cloud business launch

Published Jul 30, 12:40 AM UTC

Meta's stock fell 10% following quarterly results that revealed strong core social media performance but a significant gap in its AI business model, as free cash flow was severely impacted. CEO Mark Zuckerberg hinted at a potential cloud business launch, though details remain scarce. The decline contrasts with Microsoft's cloud milestone, where Azure crossed $100 billion in annual revenue. The article highlights investor concerns over Meta's heavy capital expenditure on AI without clear returns, while its social media advertising business remains robust. The broader context includes a chip-driven Nasdaq slump and growing panic around AI investment returns.