Meta beats expectations but legal penalties hit profit amid AI race

Meta beat investor expectations for third-quarter revenue on October 21 as the company continues to invest aggressively in artificial intelligence. However, the social media giant reported $9.86 billion in profits for the July to September period, a figure almost 50 percent below what investors expected.

According to Economic Times Tech and Straits Times Business, profits were impacted by a $9.9 billion charge stemming from an $18 billion legal settlement with nearly all US states. Straits Times Business also reported that Meta's earnings were announced shortly after a judge ordered the company to pay $25 billion to New Mexico following a jury finding that the company deceived users in a case related to the Cambridge Analytica scandal.

CFO Susan Li stated during an analyst call on October 21 that the company is monitoring active legal and regulatory matters that could affect business and financial results. Li noted that Meta faces several youth-related trials scheduled for the coming months in the United States.

Brief written by urgent.news from Economic Times Tech, Straits Times Business — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.