Meta posts lower profit after $18B settlement, raises AI cash via new stock
Briefing by News4U · First published
Meta beat revenue forecasts but profit fell after an $18B legal settlement; it will issue non-voting shares to fund AI spending.
Meta reported $9.86 billion third-quarter profit, nearly 50 percent below expectations, after a $9.9 billion charge tied to an $18 billion settlement with U.S. states and a separate $25 billion New Mexico ruling. [3]
Revenue exceeded forecasts as the core ad business stayed strong, yet capital spending reached $35 billion in the quarter and $85 billion year-to-date, prompting Meta to issue a new class of non-voting shares to raise additional funds. [1] [2] [3]
CEO Mark Zuckerberg said Reality Labs losses should narrow and that 10 million users already access the Muse AI model; shares rose as much as 7 percent. [2] [3]
Sources
- Meta Earnings Show Increased A.I. Spending, Even as Cash Pressures Grow
NY Times · · Summary only
- Meta’s stock rises as investors glimpse an opportunity that could dwarf the ad business
MarketWatch · · Summary only
- Meta beats expectations but legal penalties hit profit
RTHK Finance · · Excerpt