Meta’s Profit Takes Hit After $16 Billion Tax Charge

Meta Platforms reported a sharp drop in net profit, largely driven by a one-time $16 billion tax charge, which weighed heavily despite continued strength in its advertising and AI businesses.

The tech giant’s quarterly results showed total revenue rising, fueled by demand for its social platforms, augmented reality (AR) devices, and AI investments. However, that massive tax hit turned what might have been a strong showing into muted returns for shareholders.

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Meta’s advertising segment continued to generate robust cash flow as businesses increased spending on social media marketing. Additionally, the company’s push into AI-powered tools and immersive experiences added optimism about future growth.

Yet the tax burden substantially cut into earnings, sparking questions about its regional tax liabilities, accounting practices, and how sustainably it can balance growth with fiscal responsibilities.