Meta, Palantir or Roblox: Cathie Wood Buys $24.7M of One Stock, Sells $3.3M of the Others

Meta Platforms (META) plans to issue non-voting Class C shares starting January 2027, through a two-for-one stock split. The move aims to raise capital for AI investments, pay staff, and cover acquisitions without diluting CEO Mark Zuckerberg's control. Meta anticipates $135B-$145B in capital expenditures for 2026, funded partly by the new shares. Q3 2026 revenue rose 26% to $64.6B, but capital investments were $35B, highlighting the need for additional financing.

Global stocks fell, with MSCI's All-World index down 0.4%, as tech shares declined. Meta's revenue beat expectations but concerns over capital commitments and a $25B penalty weighed on sentiment. Oil prices rose due to geopolitical tensions. US Treasury yields dropped 10 basis points to 5.05%. French bonds saw yields rise to 5.107%.

Meta faces multiple legal setbacks, including a $25bn penalty for privacy violations and a $17bn settlement with US states. The company's total damages now exceed $942m. Meta's market value is $1.8 trillion, with profits of $52.48bn this year. A judge criticized Meta's business model, citing systematic deception and prioritization of growth over user safety. Additionally, Meta is involved in tax-related controversies, including efforts to shield CEO Mark Zuckerberg from a potential wealth tax.

Rhode Island Attorney General Peter Neronha sued Meta, alleging the company profits from fraudulent ads on its platforms, violating the state's Deceptive Trade Practices Act. The lawsuit seeks penalties and injunctive relief, claiming Meta knowingly targets vulnerable consumers, including senior citizens, with scam ads. According to Reuters, about 10% of Meta's annual ad revenue ($16 billion) comes from such ads. The state seeks restitution, civil penalties, and a monitor to ensure compliance.

Meta Platforms reported Q3 revenue of $64.6B, beating estimates, and earnings of $3.83 per share, up from $1.05 last year. The stock rose 11% in three months due to AI initiatives, including Muse AI. Analysts raised price targets, citing AI-driven growth and strong core business performance.

South Korea's KOSPI and KOSDAQ indices fell over 4% as U.S. semiconductor stocks plunged 6.7%, driven by foreign selling. SK Hynix halted Solidigm's IPO, citing market conditions. Samsung Electronics and SK Hynix shares dropped 4% and 3%, respectively. Meta's AI spending plans also weighed on sentiment, with oil prices rising on geopolitical tensions.