Meta to Issue New Class of Shares as It Tightens AI Spending Forecast
Meta said the new shares will fund acquisitions, chips and talent while its Muse AI agent reached more than 10 million users in six weeks.
- On Wednesday, Meta raised its annual spending forecast and announced plans for new non-voting shares to fund AI expansion while CEO Mark Zuckerberg maintains voting control.
- The company now expects capital expenditure between $135 billion and $145 billion this year, up from prior guidance, as it pours resources into chips and data centers to compete with OpenAI and Anthropic.
- Meta reported quarterly revenue of $64.60 billion, exceeding Wall Street estimates of $63.37 billion, though a New Mexico judge ordered a $25 billion penalty earlier Wednesday regarding user data practices.
- Shares rose around 4% in extended trading; the non-voting structure mirrors Alphabet's 2014 move, which allowed co-founders Larry Page and Sergey Brin to retain just over 50% control.
- Growth remains tied to short-video competition against TikTok and YouTube Shorts, while Meta navigates mounting legal battles including an August settlement and Cambridge Analytica case.
61 Articles
61 Articles
SCIENCE & TECH: Meta stock surges on strong earnings report; tech giant unveils new shares to bankroll AI spending
Meta shares surged more than 4% in early after-hours trading Wednesday as the Facebook parent reported a 26% jump in quarterly revenue and unveiled plans for a new class of stock that could help finance its massive artificial intelligence spending. Shares of the social media giant jumped 4% to $726 in after-hours trading as of 4:05 p.m. Wednesday, up nearly $30 from their closing price of $697.52. The rally came as Mark Zuckerberg’s company repo…
Its quarterly results illustrate this large gap. Advertising on Facebook, Instagram and WhatsApp increased its turnover to $64.6 billion in the 3rd quarter (+26% over a year), above expectations. But its profit was reduced by almost $10 billion related to the agreement reached in late August with almost all the US states, which accused it of having made its addictive platforms for teenagers. The judicial threat is not lifted: the group is waitin…
Coverage Details
Bias Distribution
- 43% of the sources are Center, 43% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
