Meta ordered to pay New Mexico $25 billion for consumer protection violations

Meta ordered to pay New Mexico $25B for deceiving users about privacy on Facebook, the largest fine ever against the company. A jury found Meta liable for over 43M violations of consumer protection laws. Meta reported quarterly revenue of $64.6B, exceeding estimates. New Mexico did not join a multistate settlement with Meta, choosing to pursue its own case.

Meta reported Q3 earnings, noting 10% YoY ad impression growth and 14% higher ad prices. AI-driven tools boosted ad performance and user engagement on Instagram and Facebook. Muse AI agent usage grew, with 10M users in the U.S. and Canada. Reality Labs revenue fell 6% to $443M. Meta forecasts Q4 2026 revenue of $73B-$76B and plans a stock dividend.

Meta Platforms reported Q3 revenue of $64.60B, up 26% YoY, beating expectations. Earnings per share were $3.83, including a $9.89B legal charge. The company announced a stock split via nonvoting Class C shares. Meta expects Q4 revenue of $73B-$76B and plans to reduce Reality Labs losses to $15B in 2024. CEO Mark Zuckerberg signed a Founder Alignment Agreement, restricting his share sales.

Meta CEO Mark Zuckerberg announced during the company's Q3 earnings call that Muse, its AI personal agent, has gained significant adoption with over 10 million users. He expects Muse to eventually generate more revenue per user than Facebook and Instagram, with plans to monetize it through commerce tools and AI subscriptions. Muse is currently more expensive to operate but is seeing high user engagement, with an average purchase of $200.

Meta reported Q3 revenue of $64.6B, up 26% YoY, with advertising revenue at $63.1B. Ad impressions rose 10%, and ad prices increased 14%. AI investments contributed to higher ad engagement and conversions. A $9.9B legal settlement charge reduced GAAP operating income by 37% YoY to $13B. Excluding this charge, operating income would have risen 11% YoY.

A New Mexico judge ordered Meta Platforms to pay a $25 billion penalty for misleading consumers about data privacy, one of the largest penalties in US history. The ruling follows a jury verdict in a case involving Cambridge Analytica's unauthorized data access. Meta plans to appeal, calling the ruling unworkable. Analysts suggest the penalty, while large, is unlikely to significantly impact Meta's value.