Meta Tops Q3 Revenue Estimates, But Earnings Hit By Teen Lawsuit Settlement; Stock Split Creates Class C Shares

Meta has introduced a new class of stock to maintain the founder-led model that has propelled the company to success, ensuring Mark Zuckerberg remains as CEO. The company disclosed this development in its third-quarter earnings report. The new Class C stock will provide Meta with the means to finance its growth while preserving Zuckerberg's leadership role.

The Special Committee appointed by Meta's board declared Zuckerberg the ideal leader for the company's future, praising his innovative vision and management skills. The distribution of the Class C stock will effectively function as a two-for-one stock split for existing shareholders, according to Meta's press release. This move is similar to what other tech giants like Google have done in the past.

Meta's AI team has been closely associated with Zuckerberg, who has been actively involved in the development of Meta's AI projects, such as the Muse AI agent. The company's success in this field has also brought attention to Alexandr Wang, Meta's Chief AI Officer, who has been working closely with Zuckerberg and has been considered a potential successor.