From The Motley Fool · Danny Vena, CPA · · 50s
Meta Stock Drops 7.6% After AI Costs
Meta Platforms stock fell 7.6% Thursday as AI expenses and legal issues hit.
In brief
Meta Platforms stock fell 7.6% Thursday as AI expenses and legal issues hit. Meta Platforms stock dropped 7.6% Thursday due to AI costs and a $25 billion privacy judgment. Originally reported by The Motley Fool.
Stock Plunges 7.6%
Shares of Meta Platforms dropped 7.6% Thursday, falling as much as 7.2% by 1:10 p.m. ET.
AI Costs and Legal Issues
Meta announced a new stock class to fund AI expenses, employee costs, and potential acquisitions, while New Mexico sued for $25 billion over privacy.
Financial Results
Meta reported $64.6 billion revenue and $3.83 diluted EPS for Q3, but took a $9.9 billion charge for teen social media addiction.
Stock Structure Change
Meta will create non-voting Class C shares to raise capital, allowing Zuckerberg to retain over 60% voting control by Jan. 19, 2027.
The key point
Meta Platforms stock dropped 7.6% Thursday due to AI costs and a $25 billion privacy judgment.
