Meta reports strong earnings and plans new stock class for AI

Summarised from 2 outlets · 3 reports · Updated 22 Oct, 10:33 · Archive

Meta reported 26% quarterly revenue growth and announced plans for a new class of stock to fund artificial intelligence spending.

Meta reported third-quarter revenue of $64.6 billion, up 26% year-on-year, with advertising sales climbing 26% to $63.1 billion. The company also reported net income of $9.86 billion, or $3.83 per diluted share, compared with $2.71 billion, or $1.05 per diluted share, in the previous year. Shares surged more than 4% in after-hours trading, reaching $726.

Mark Zuckerberg said in a statement that the company's investments were paying off and the core business remained strong. Meta announced plans for a new class of stock designed to help finance its massive artificial intelligence spending, which totalled $145 billion this year. The company forecast fourth-quarter revenue of $73 billion to $76 billion and signalled plans to continue aggressive artificial intelligence investment next year.

Meta's Muse AI agent has attracted 10 million users since launching six weeks ago. The earnings were weighed down by a nearly $10 billion charge tied to a sweeping legal settlement: Meta booked a $9.89 billion charge related to an August agreement with 52 state attorneys general to resolve litigation over teen mental health and social media, with payments due of up to about $18.59 billion.

How it is being reported

• Meta's Zuckerberg pitches AI successes to investors with 26% rise in quarterly revenueMeta Platforms CEO Mark Zuckerberg touted the company's progress on artificial intelligence during an earnings call on Wednesday and called for more investment. The tech giant's Muse AI agent has garnered 10 million users since its launch six weeks ago, while third-quarter revenue rose to $64.6 billion. Meanwhile, the company is accused of political interference in Brazil's presidential election. Also in this edition, we check in on France's rising borrowing costs.France 24 · 22 Oct, 10:18
• Meta stock surges on strong earnings report; tech giant unveils new shares to bankroll AI spendingThe Mark Zuckerberg-led tech giant unveiled plans for a new class of stock designed to bankroll its massive artificial intelligence spending.New York Post · 21 Oct, 23:12
• Speculation — and anxiety — growing that Mark Zuckerberg’s Meta will issue new stock to pay for lavish AI spendingZuck may want to time the sale not only with the recent upswing in Meta stock but also euphoria that is likely to surround the upcoming Anthropic IPO.New York Post · 21 Oct, 17:48

In this story: Meta · Mark Zuckerberg · Menlo Park · Muse · Brazil

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