Meta Platforms beat market expectations for second-quarter revenue on Wednesday (July 31) and issued a rosy sales forecast for the third quarter, signaling that robust digital-ad spending on its social media platforms can cover the cost of its artificial-intelligence investments.

Shares of the company were up 6.8 per cent after the bell.

The Facebook and Instagram parent said it anticipates third-quarter revenue in the range of US$38.5 billion (S$51.4 billion) to US$41 billion, the midpoint of which is higher than analysts' estimates of US$39.1 billion, according to LSEG data.

Revenue rose 22 per cent to US$39.1 billion for the April to June period, Meta said, compared with analysts' expectations of US$38.3 billion.

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