Meta's stock fell 10% on Wednesday after the company disclosed that its capital expenditure growth far outpaced revenue growth, with about 98% of Meta's revenue still coming from its traditional ads business, according to its second-quarter results. EMARKETER senior analyst Minda Smiley said the company's continuous rollouts of new subscriptions, smart glasses, apps, and potential AI compute sales "increasingly feel more like the company is throwing spaghetti at the wall instead of rallying around a sustainable way forward." A Meta spokesperson countered that AI investments supercharge the business, citing 9 million small businesses using Meta's AI image-editing tools and a 60% increase in daily interactions with its AI assistant since adding the Muse Spark model. On the earnings call, CEO Mark Zuckerberg said Meta is working on more powerful AI models for future revenue growth and predicted billions of people using personal AI agents, though he acknowledged that hasn't been realized yet. Thomas Monteiro, a senior analyst at Investing.com, noted that "even strong ads are not enough considering the expenses outlook."