Meta Plans Non-Voting Stock to Fund AI Expansion After $64 Billion Quarter
Meta plans non-voting shares to finance AI growth after $64 billion quarterly revenue, while costs surge 68% and Reality Labs losses could reach $19 billion.
Summary
Meta confirmed on October 21, 2026, alongside third-quarter earnings, that it plans a publicly traded class of non-voting capital stock, distributed to all existing shareholders through a stock dividend. CFO Susan Li said the shares could support capital raising, employee compensation, acquisitions and other corporate purposes while preserving Class A and B voting power and Meta’s founder-led structure, widening its funding options for AI-led growth.
Quarterly revenue beat Wall Street expectations at $64 billion, up 26% year over year, while costs and expenses rose 68%. Reality Labs, responsible for AR glasses, VR headsets and VR software, expects losses of $18 billion to $19 billion, below 2025 levels. Meta released Muse Spark and Muse Glimmer, followed by Muse Wonder and open-weight Muse Spark Open, whose parameters outsiders can use and build on; it also launched developer coding agent Muse Code and announced Meta Muse avatars at Meta Connect. CEO Mark Zuckerberg said more than 10 million people in the United States and Canada created Muse personal agents within a month and a half, with the product ranking first in the App Store almost daily. He said Muse has product-market fit and is entering an operational scaling phase intended eventually to serve billions. Meta continues to face youth-related scrutiny, upcoming United States trials and other legal and regulatory matters that could significantly affect its business and financial results.
Positives
- $64 billion in third-quarter revenue exceeded Wall Street expectations and represented 26% year-over-year growth.
- More than 10 million United States and Canadian users created Muse personal agents within a month and a half.
- Muse ranked first in the App Store almost every day during its early growth period.
- Reality Labs expects losses of $18 billion to $19 billion, an improvement from 2025 levels.
- Muse Spark Open gives outsiders access to underlying model parameters for further use and development.
- A publicly traded non-voting share class would expand Meta’s options for fundraising, compensation and acquisitions.
Risks & concerns
- Costs and expenses climbed 68% year over year, substantially faster than Meta’s 26% revenue growth.
- Reality Labs still expects losses between $18 billion and $19 billion despite improving from 2025.
- Non-voting shares would provide their owners no say in corporate decisions.
- Youth-related scrutiny continues across several markets, with multiple United States trials scheduled in the coming months.
- Active legal and regulatory matters could significantly affect Meta’s business and financial results.