French Shopkeepers Arm Themselves as Second Protest Looms

Meta Platforms (META) reported Q3 2026 revenue of $64.6B, up 26% YoY, with strong user growth and engagement. Expenses rose 68% YoY to $51.6B, including legal charges, reducing GAAP operating income by 37%. Free cash flow was negative $2.1B. Reality Labs revenue declined 6% YoY. The company launched Muse, an AI agent, and announced a 2-for-1 stock split. Meta expects significant AI investments to continue, with 2026 expenses projected at $175-179B and capital expenditures at $135-145B.

Meta Platforms Inc reported Q3 2026 revenue of $64.6 billion, up 26% YoY, driven by strong ad revenue growth. However, expenses surged 68% YoY to $51.6 billion, including a $9.9 billion legal charge, leading to a 37% decline in GAAP operating income. The company announced a stock split and expects Q4 revenue of $73-76 billion. Reality Labs revenue declined 6% YoY to $443 million. Free cash flow was negative $2.1 billion, and capital expenditures were $34.9 billion.

US Treasuries rallied as AI-related stocks fell, with yields dropping 20 basis points. Meta may raise $40B+ for AI investment, with plans for new non-voting shares. Cybersecurity stocks rose, with Morgan Stanley highlighting Palo Alto Networks as a short-term opportunity.

Meta's stock fell 8% post-earnings, with revenue up 26% to $64.6B but negative free cash flow of $2.12B. Expenses rose to $175B-$179B, including a $9.9B legal charge. The company faces $42B in legal penalties and plans $135B-$145B in capex by 2026. Management acknowledged high spending on AI and other initiatives.

Meta Platforms reported 26% revenue growth in Q3, beating forecasts, but experienced its first cash burn since 2012, with negative free cash flow of $2.12 billion. Despite this, analysts raised price targets, averaging $856, implying 26% upside. Shares initially fell 6.6%. Meta's capital spending exceeded operating cash flow, driven by AI investments. The company's core business remains profitable, but AI buildout costs are significant.

Meta (META) approved a new non-voting stock class, Class C, to help CEO Mark Zuckerberg raise funds for a potential California wealth tax without losing voting control. The stock, effective January, will create a two-for-one split. Zuckerberg may sell 10% of his economic stake to cover a potential $11 billion tax bill under California Proposition 40.