Why Meta's spending sent stocks lower during a volatile market week

Meta's CrossCheck list grew to 799,000 US accounts by 2025, up from 13,500 in 2020. Mark Zuckerberg testified in a deposition that he was unaware of many details about the system, which gave certain accounts extra review. The trial resulted in a $25 billion penalty for Meta. Zuckerberg also discussed Meta's governance and equal enforcement promises, which were found deceptive by the jury.

Meta recorded a loss accrual for a $25 billion New Mexico penalty in its Q3 2026 filing. The company also detailed a $18.59 billion teen mental health settlement and $454.52 billion in non-cancelable commitments, mostly for AI infrastructure. Meta plans to appeal the penalty and may face significant costs. The filing also highlights online commerce as the largest source of ad growth.

Amazon and Google signed 20-year deals with Constellation Energy for nuclear power, totaling $4.3B. Amazon secured 690 MW from Calvert Cliffs, while Google's deal covers 11 reactors. Critics question if these agreements will meet data center demand and impact household electricity costs. The Energy Department approved $4.4B in loans for nuclear facilities. Meta, Microsoft, and Amazon have also made significant nuclear power agreements.

France's 10-year bond yield rose to 5.1415% intraday, surpassing U.S. yields, amid protests. Big Tech's AI spending is projected to reach $945.5B by January 2025, with Meta committing $825B. U.S. housing market sees decline in transactions and starts as mortgage rates exceed 7%. SpaceX seeks 80,000 cell sites to become a major U.S. mobile carrier.

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.