Meta's strong earnings report sent its stock soaring after hours. The company also made it clear that the AI talent wars come with a hefty price tag.

In the midst of an artificial intelligence spending spree, Meta posted stronger-than-expected results for the second quarter, buoyed by growing ad revenue even as its expenses increased.

Recent Q2 earnings reports have brought unexpected good news for both Meta (META) and Microsoft (MSFT). The stronger-then-expected reports have caused a broader market rally, pushing tech index Nasdaq to new record levels.