Brief
Meta shares jump 4% after earnings beat and plan for new non‑voting stock
The Facebook parent posted Q3 revenue of $64.6 billion and unveiled a new class of non‑voting shares to finance its AI ambitions.
By Felo News Desk · Published
Meta Platforms Inc. saw its stock rise more than 4% in after‑hours trading on Wednesday, reaching $726 per share, after reporting a 26% jump in third‑quarter revenue and announcing a new class of non‑voting shares intended to fund its artificial‑intelligence investments.
What happened
The company posted Q3 revenue of $64.6 billion, up from $51.2 billion a year earlier, while advertising sales also grew 26% to $63.1 billion. Net income rose to $9.86 billion, or $3.83 per diluted share, compared with $2.71 billion, or $1.05 per diluted share, in the same quarter last year. However, the earnings were offset by a $9.89 billion charge linked to a settlement with 52 state attorneys general over teen‑mental‑health concerns, which reduced operating income by 37% to $12.99 billion. Excluding the charge, operating profit would have been $22.88 billion and diluted earnings per share $7.40.
What the reports add
The article notes that Meta also forecast fourth‑quarter revenue between $73 billion and $76 billion and signaled continued aggressive AI spending in 2027. It details the capital‑structure change: the board approved the creation of publicly traded, non‑voting Class C shares, with one Class C share to be issued for each existing Class A or Class B share. The distribution date was not disclosed, and the new shares are set to take effect on Jan. 19 2027.
What was said
Meta CEO Mark Zuckerberg said, “Our investments are paying off, the core business is strong, and we’re seeing velocity across the board,” in a statement released with the earnings report.
How it came about
Meta’s earnings surge follows a period of heightened AI‑related market volatility, as highlighted in Felo’s September coverage of AI‑driven stock swings. The company’s earlier announcement of a new VR headset slated for 2027 also underscored its broader push into advanced technologies.
Key facts
- Meta’s Q3 revenue rose 26% to $64.6 billion. (nypost.com)
- Shares jumped over 4% to $726 in after‑hours trading. (nypost.com)
- Meta recorded a $9.89 billion charge tied to a settlement with 52 state AGs. (nypost.com)
- The board approved a new non‑voting Class C share class, effective Jan. 19 2027. (nypost.com)
- Zuckerberg said the company’s AI investments are paying off. (nypost.com)
Sources
- [1] nypost.com — originally reported as “Meta stock surges on strong earnings report; tech giant unveils new shares to bankroll AI spending”
