DeepSeek's 100 Billion Yuan Funding Round Finalized, With CATL and Tencent Joining In; Apple's Foldable Phone Faces App Compatibility Challenges

Meta (META) reported Q3 revenue growth, raised 2026 expense guidance to $175B–$179B, and issued Q4 revenue guidance of $73B–$76B. The company reported a $2.1B free cash flow loss, with shares dropping 6% on October 22. Meta plans a new class of nonvoting shares to fund AI investments, requiring hundreds of billions of dollars from 2026. Quarterly costs rose 68% to $51.61B, including a $9.89B litigation charge. GAAP diluted EPS was $3.83, with adjusted EPS excluding the settlement at $7.40.

The FCC approved Globalstar's C-3 satellite constellation, allowing it to provide direct-to-device connectivity in the US. Globalstar, which Apple is acquiring for $11.6 billion, plans to launch 48 operational LEO satellites by 2032. The system will support Apple's satellite communication services.

Apple Inc. launched its first foldable smartphone, the iPhone Duo, in Japan. The device features a 7.6-inch screen and starts at 364,800 yen. It supports dual-app display and hands-free calling. A dozen people lined up at a Tokyo Apple store for its release.

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.