Meta Will Create New Stock Class to Fund AI Spending

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, October 21, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

Meta Platforms reported record third-quarter revenue of $64.2 billion, a 26% year-over-year increase, while announcing plans to issue a new class of nonvoting stock effective in January 2027 to fund artificial intelligence development. The company’s net income fell to $9.8 billion, significantly below the $17.2 billion forecast by analysts surveyed by FactSet, due to a $9.9 billion legal charge associated with settling social-media harm lawsuits. Meta stated it will spend up to $145 billion on capital expenditures this year to transform into an AI-focused firm, a strategy that has drawn hesitation from investors seeking near-term returns. The company restructured its operations around Meta Superintelligence Labs and launched a new business line for enterprise AI tools.

Background

• Meta’s personal-assistant AI agent, Muse, has been downloaded more than 10 million times according to SensorTower, and Truist Securities projects it could generate $28.5 billion in incremental revenue by 2030.
• In August, Meta agreed to pay up to $18 billion to settle with 48 states and modify how it manages teen accounts.
• A New Mexico judge ordered Meta to pay $25 billion on Wednesday after a jury found the company misled users regarding data-privacy practices.
• Muse faces limitations as dozens of websites, including Amazon.com, have blocked the app, restricting its ability to perform shopping tasks.

Read the full article at wsj.com

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