Meta Platforms Shares Drop Following Q3 Earnings and New Stock Structure Announcement
Meta Platforms (META) shares fell significantly after the company reported third-quarter financial results that were impacted by a $9.9 billion legal settlement charge related to teen social media addiction. Despite this charge, Meta's underlying performance was strong, with revenue growing 26% to $64.6 billion and daily active users reaching 3.64 billion. Excluding the one-time charge, earnings per share would have significantly exceeded analyst expectations. The stock decline was further driven by news of a structural change in Meta's equity. The board announced the creation of non-voting Class C shares, effective January 2027, intended to fund AI expansion and employee compensation while allowing CEO Mark Zuckerberg to maintain majority voting control. Additionally, the company faces a massive $25 billion privacy judgment from New Mexico regarding the Cambridge Analytica scandal, which Meta intends to appeal.
Tickers: $META
Topics: AI spending earnings report legal settlement charge revenue growth stock structure change
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Part of the story Meta Platforms Shares Drop Following Q3 Earnings and New Stock Structure Announcement (7 articles)