64 Billion in Revenue Fuels Meta's Plan for Non-Voting Shares

Meta reported a robust third quarter on Wednesday, with revenue reaching 64 billion dollars, a 26% increase from the same period last year. Alongside these strong financial results, the company confirmed plans to create a new financial instrument designed to support its massive investments in artificial intelligence infrastructure.

According to reports from Semafor, Meta is preparing to issue a specific type of equity that does not carry voting rights. This move allows the company to raise capital without diluting the voting power of its existing Class A and B shareholders. Chief Financial Officer Susan Li stated on the earnings call that this new class of non-voting capital stock will be distributed to current holders as a stock dividend. The primary goal is to create a publicly traded asset that can be used for raising funds, compensating employees, and facilitating acquisitions, all while preserving the current founder-led governance structure.

Li emphasized that this financial tool provides the flexibility needed to invest in the momentum currently driving the business. She noted that the company sees significant growth potential across various sectors, largely driven by its AI initiatives. By separating voting rights from financial interest, Meta aims to secure the resources necessary for its expansion without altering the balance of power among its long-standing investors.

The financial picture, however, is not without its complexities. While revenue grew, costs and expenses surged by 68% year-over-year. The Reality Labs division, which handles augmented and virtual reality hardware and software, continues to operate at a loss. The company projects that these losses will narrow from 2025 levels to a range between 18 billion and 19 billion dollars in the coming year.

Meta has been aggressive in its AI development over the past year. The company released several models, including Muse Spark and Muse Glimmer earlier this year. More recently, it introduced Muse Wonder and Muse Spark Open, the latter being an open-weight model with publicly available parameters. The firm also launched Muse Code, a coding agent for developers, and unveiled a new line of avatars for its AI assistant, Meta Muse, at its Connect event. These avatars are designed to make the technology feel more relatable and shareable.

CEO Mark Zuckerberg indicated that these AI products are gaining traction. He reported that over 10 million people in the United States and Canada have set up Muse personal agents in just six weeks. Zuckerberg described the product as having achieved clear product-market fit, with the company now entering a phase focused on scaling operations. He expressed confidence that the service could eventually serve billions of users.

Despite the optimism, Li acknowledged that legal and regulatory challenges remain on the horizon. The company is monitoring active matters that could impact its financial results. Specific scrutiny regarding youth-related issues persists in several markets, with multiple trials scheduled in the United States in the coming months.