Meta Acquires Conductor, the App That Runs AI Coding Agents in Parallel

Morgan Stanley reports that U.S. election uncertainty has delayed some 2028 data center projects to 2029, but the long-term AI investment thesis remains intact. The firm recommends a 'buy-the-dip' strategy for large cloud providers and AI-related stocks, citing strong long-term demand.

The IRS requested the U.S. Tax Court to uphold a $58 million penalty against Meta for allegedly incorrect foreign tax credit claims. The case centers on Meta's tax reporting practices in Brazil.

Meta Platforms plans to issue non-voting Class C shares to raise hundreds of billions for AI investments, starting as early as fall 2026. The move aims to secure capital before competitors absorb available funding. Existing shareholders will receive one non-voting share per share held, with the change effective January 19, 2027. Meta's management forecasts indicate significant capital needs over several years, according to a securities filing.

Louisiana groups sued the Public Service Commission over its 'Lightning Speed Initiative,' alleging lack of transparency in fast-tracking power projects for Meta's $50B Hyperion data center. Plaintiffs claim the commission violated the state constitution by not providing adequate public notice. Entergy Louisiana seeks $14B in energy infrastructure approval, with concerns raised about potential rate increases for consumers.

Meta, Google, and TikTok sued California over AB 1709, a law restricting addictive features for users under 16. The law, set to take effect in 2027, imposes penalties up to $50,000 per violation. The companies argue the law infringes on their editorial decisions and First Amendment rights, with each focusing on their own platforms. A court victory may not protect other companies from the law's provisions.

Amazon (AMZN) and Meta (META) shares rose 3% and 5% after JPMorgan analyst Doug Anmuth named them top internet picks. Anmuth cited AWS's 39% YOY revenue growth and Meta's 26% ad growth. Alphabet (GOOGL) was removed from the list but shares still climbed 2%. Anmuth maintained Buy ratings with $365 and $940 price targets for AMZN and META, respectively.