Meta’s AI capital spending ballooned to $130-145 billion, cratering free cash flow 91% and sending shares down 10%, while social media revenue surged 28%. In the quarter, revenue rose 28% to $60.8 billion, and ad impressions were up 14% year over year. Net income fell 14% to $15.9 billion. Guidance was weak, with third quarter 2026 total revenue expected in the range of $61-64 billion. Meta anticipated 2026 capital expenditures, including principal payments on finance leases, to be in the range of $130-145 billion, narrowed from a prior outlook of $125-145 billion. Meanwhile, Meta dominates India, a market 4.4 times the size of the US, with no rival close. CNBC reported that daily active users on Instagram jumped 16% year-on-year to 531 million between July 18 and July 26, per Sensor Tower data. WhatsApp had an average of 837 million daily active users in India, Instagram 501 million and Facebook 362 million so far this year. India’s population is 1.47 billion. Two analysts added that Meta’s ability to target people by way of its algorithms is extraordinary. The article argues Meta should abandon AI, where it is already a loser, and focus on its core social business, which is doing better than expected.