Two-Thirds of S&P 500 Stocks Rose on Thursday, but the Index Still Fell — Exposing the Risk Hiding in Your Portfolio

Meta reported Q3 revenue of $64.6B (+26% Y/Y) and adjusted EPS of $7.40, beating estimates. Shares fell 7% due to rising AI spending and negative free cash flow. Muse, Meta's AI assistant, has 10M users, with 25% daily retention. Meta raised FY26 CapEx guidance to $135-145B. The company faces legal risks and plans a 2-for-1 stock split in 2027. Management guided Q4 revenue to $73-76B, above consensus.

Meta Platforms Inc. faces accusations from Brazil's President Lula's campaign of interfering in the election by restricting content. The electoral court ordered Meta not to interfere, and US lawmakers have also raised concerns. Meta denies bias, attributing issues to technical problems. The outcome of Brazil's election, tied in polls, could be influenced by social media reach, with Meta's platforms being central to voter communication.

Meta Platforms Inc. reported revenue beat and raised 2026 capital spending to $135B, but its stock fell 7% due to cost concerns. Nasdaq 100 dropped 2.9%, led by a 6.7% decline in chip stocks. CoreWeave Inc. bonds yield near 15%, shares slid 11% this week. SpaceX posted first profit since IPO, revenue up 161% to $14.6B. GM, Ford, and Stellantis stocks fell despite GM's revenue and earnings beat.

Sheryl Sandberg, former Facebook COO, testified in a 2026 New Mexico trial that she was unaware of certain app developer vetting practices between 2012 and 2018. The jury found 26 of 29 Facebook statements misleading, leading to a $25 billion penalty. Sandberg defended Facebook's data practices, stating it does not sell user data. The case involves 43.9 million alleged violations under New Mexico's Unfair Practices Act.

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.