From SiliconANGLE · Duncan Riley · · 1m 20s
Meta Beats Revenue, Splits Stock to Raise Capital
Meta's stock drops after beating revenue expectations and splitting shares to fund AI growth.
In brief
Meta's stock drops after beating revenue expectations and splitting shares to fund AI growth. Meta reported higher quarterly revenue and earnings per share but stock fell as investors worried about AI infrastructure spending after splitting shares. Originally reported by SiliconANGLE.
Meta Beats Revenue
Meta reported diluted earnings per share of $3.83, up from $1.05 a year earlier, on revenue of $64.60 billion, up 26% year-over-year.
Stock Splits with Nonvoting Shares
Meta will split its stock through a dividend of new Class C shares, one for each outstanding Class A and Class B share, effective Jan. 19, 2027.
Investor Reaction
Shares rose 2% in after-hours trading Wednesday but fell 8% Thursday as investors worried about AI infrastructure spending.
AI Infrastructure Spending
Meta expects to spend more on AI infrastructure as the new shares will be used to fund AI development and expansion.
Muse Service Growth
Over 10 million U.S. and Canadian users signed up for Muse in six weeks, but global expansion is delayed due to computing power needs.
Zuckerberg's Share Restrictions
Zuckerberg's voting control remains at 60.6% of shares with 13.4% economic interest after receiving nonvoting Class C shares.
Stock Price Impact
Meta's stock fell 8% Thursday as investors reconsidered the stock split's impact on AI infrastructure spending.
What it means
Meta reported higher quarterly revenue and earnings per share but stock fell as investors worried about AI infrastructure spending after splitting shares.
