From Malay Mail · · 1m 20s
Meta revenue beats forecasts but legal charges weigh on profit
Meta's profits drop 50% as $18bn legal settlement hits earnings.
In brief
Meta's profits drop 50% as $18bn legal settlement hits earnings. Meta reported $9.86 billion in Q3 profits, 50% below expectations, due to a $9.9 billion legal charge from a US$18 billion settlement with US states. Originally reported by Malay Mail.
Meta earnings report
Meta reported US$9.86 billion in Q3 profits, 50% below investor expectations.
Legal settlement impact
A US$9.9 billion charge related to a US$18 billion legal settlement with US states reduced profits.
New Mexico penalty
Meta must pay US$25 billion to New Mexico after a jury found it deceived users in Cambridge Analytica case.
AI investment focus
Meta's AI division Reality Labs aims for profitability with 10 million users in US and Canada.
AI hardware progress
Meta unveiled AI-powered glasses and Muse model for wearables, targeting 10 million users.
Capital expenditures
Meta spent US$35 billion on capital expenditures in Q3, below investor expectations of US$41 billion.
AI roadmap funding
Meta plans to issue non-voting shares to raise cash for AI investments and retain Zuckerberg.
California tax concerns
Proposition 40 tax on billionaire wealth could reduce Zuckerberg's voting power to 53% or lower.
Next steps for Meta
Meta shares rose 7% after earnings report as investors react to legal and AI developments.
What to remember
Meta reported $9.86 billion in Q3 profits, 50% below expectations, due to a $9.9 billion legal charge from a US$18 billion settlement with US states.
