Meta revenue beats forecasts but legal charges weigh on profit
SAN FRANCISCO, Oct 22 — Meta beat investor expectations for third-quarter revenue on Wednesday as it doubles down...
Meta reported stronger revenue than anticipated for Q3, but its profit suffered due to an $18 billion legal settlement with almost all US states. The company's earnings of $9.86 billion in July-September were nearly 50% less than what investors had expected. This decline was mainly due to a $9.9 billion charge related to the settlement.
Meta also announced a new class of stock, which would allow it to raise more funds for its AI-driven initiatives. The company spent $35 billion on capital expenditures in Q3, less than the $41 billion expected by investors. Meta's AI division, Reality Labs, is working on AI-powered wearables, including glasses and a tamagotchi-like device called Muse Charm.
However, the company is facing numerous legal challenges, including a $25 billion penalty in New Mexico for deceiving users in a case related to the Cambridge Analytica scandal. CFO Susan Li cautioned that these legal matters could significantly impact Meta's business and financial results.
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- Meta beats on revenue and splits its stock with nonvoting shares to raise capital siliconangle.com
- Meta's Q3 profits dip nearly 50% after $18 billion legal settlement even as company beats revenue estimates hindustantimes.com
- Meta beats revenue expectations but legal penalties hit profit freemalaysiatoday.com
