Meta Rises After Raising Guidance and Introducing New Share Class
Meta Platforms ($META) shares are up 3% in the after-hours after better than expected Q3 revenues and a raise to Q4 guidance to $73 billion to $76 billion, above analyst estimates of $73.6 billion according to Bloomberg. The firm though declined to provide a 2027 outlook.
The company also lifted the bottom of its 2026 capex to $135 billion (to $145 billion) from $130 billion previously.
But the headline may be the creation of a new class of publicly listed non-voting Class C common stock, with an effective date in January 2027. The goal is to “provide Meta the ability to finance its growth and help the company remain a leader among fierce competition both domestic and international.” The new class of shares will be distributed to existing investors through a stock dividend. Holders will get one share of the new stock in what will essentially be a two-for-one stock split, Meta said.
“Our investments are paying off, the core business is strong, and we’re seeing velocity across the board,” Chief Executive Officer Mark Zuckerberg said in Wednesday’s report.
Bloomberg has a live chat ongoing if you want to follow the twists and turns of the earnings call.
