Meta's free cash flow wiped out as AI buildout grows

July 29 : Meta Platforms reported a precipitous 91 per cent drop in free cash flow on Wednesday, underscoring the financial strain of the social media giant's costly AI buildout despite an uncertain payoff.The company reported free cash flow of $784 million in the second quarter, down from $8.55 billion reported a year earlier.Shares of the company fell about 5 per cent in extended trading.Meta's cash flow wipe-out echoed Alphabet's, which last week said it was cash flow negative for the first time ever as it spent $5.9 billion in the second quarter. The rate of spending stunned even the most bullish of Wall Street investors, driving Alphabet's stock down. Facebook parent Meta now expects 2026 capital expenditure to be between $130 billion and $145 billion, compared with its prior forecast