Meta drops 10% after hours as free cash flow plunges to $784M; Zuckerberg hints at cloud business

Published Jul 30, 12:40 AM UTC

Meta's stock fell up to 10% in after-hours trading on July 29, 2026, after the company reported a sharp decline in free cash flow to just $784 million, far below the $12 billion average of the previous eight quarters. While Q2 revenue rose 28% year-over-year, operating income for its Family of Apps fell to $23.4 billion from $25.0 billion, and net income dropped 14%. Capital expenditure surged to $31.1 billion, nearly double the prior year, as Meta invests heavily in AI infrastructure. CEO Mark Zuckerberg acknowledged plans to launch a cloud business to rent computing power, but framed it as a side quest, emphasizing higher margins from selling AI services. The company faces pressure as rivals Microsoft, Amazon, and Google already generate revenue from cloud rentals.