Meta beats revenue expectations but legal penalties hit profit
The company reported its earnings just hours after another financial penalty was announced related to a case in New Mexico.
Meta reported a profit of US$9.86 billion for Q3 2024, falling short of investor expectations of US$19.75 billion (EPA Images pic). The social media giant's earnings were negatively impacted by an US$18 billion legal settlement with nearly all US states, which dragged profits down by nearly 50%. Just hours after the earnings report, another financial penalty was disclosed, with a New Mexico judge ruling that Meta must pay US$25 billion in a case related to the Cambridge Analytica scandal.
Additionally, Meta has been investing heavily in its artificial intelligence capabilities, spending US$35 billion on capital expenditures in the September quarter, slightly below the US$41 billion expected by investors. Despite these challenges, Meta shares experienced a significant jump of over 4% following the earnings release.
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