Meta Stock Rises as Company Posts Q3 Revenue Beat and Stock Split

Meta Stock Surges on Q3 Revenue Beat and Split Plans

Meta has reported its financial results for the third quarter, delivering a revenue beat accompanied by strong forward guidance. Alongside the positive financial performance, the company announced structural changes that directly impact investors watching meta stock.

Meta Stock Split and New Share Class

During the recent financial update, leadership revealed plans to establish a new class of non-voting Class C common stock, scheduled to take effect in January 2027. This distribution to existing shareholders functions effectively as a two-for-one stock split. According to corporate filings, this strategic move aims to help finance ongoing growth and maintain competitive leadership against domestic and international rivals.

As part of these structural adjustments, CEO Mark Zuckerberg entered into a Founder Alignment Agreement. This agreement includes provisions regarding his service to the enterprise, sales of the newly distributed Class C common stock, and a commitment to maintain his primary residence in California or a corporate headquarters jurisdiction for eight years.

Artificial Intelligence and Workforce Updates

The company continues to lean heavily into artificial intelligence initiatives, updating its full-year capital expenditure forecast for data centers to a range of $135 billion to $145 billion. Chief executive Mark Zuckerberg highlighted the expansion of proprietary foundation models and the Muse Code AI agent.

Shopping remains the dominant use case for the Muse personal agents. Over 10 million individuals across the United States and Canada have established personal agents over the past month and a half. Engagement remains notable, with roughly a quarter of users active daily and average purchase sizes exceeding $200 for participating early adopters.

Meanwhile, operational adjustments continue across the organization. Finance chief Susan Li reported that the corporate workforce contracted by 12% quarter-on-quarter, bringing total headcount down to 66,000 employees following previous summer reductions.

Reality Labs Financial Performance

The virtual reality and artificial intelligence hardware division, Reality Labs, recorded $443 million in sales for the third quarter. However, the unit simultaneously generated $4.13 billion in operating losses, trailing the broader profitability of the wider corporation.

Sources: CNBC, Bloomberg.com, Yahoo Finance.