Meta Launches New Stock Class

Meta is changing how it raises money for its AI future.

The company announced a new type of stock on Wednesday. This move comes as it reports its third-quarter earnings. The new shares will not carry voting rights. This structure helps Meta keep its current leadership style. It also gives the firm more tools for future funding.

Susan Li, the company's chief financial officer, confirmed the plan during the earnings call. She said the new class of capital stock will go to existing shareholders. This will happen through a stock dividend. Li explained that the goal is to create a publicly traded non-voting stock. This stock can be used for several purposes. These include raising capital, paying employees, and making acquisitions. It also serves other general corporate needs. Importantly, the voting power of current Class A and B shareholders remains unchanged.

This new financial tool allows Meta to maintain its founder-led structure. Li noted that it provides flexibility for investment. The company sees strong momentum in its business driven by AI. The firm wants to invest heavily in this area. The new shares help facilitate that spending without diluting the voting control of existing owners.

Meta's financial results for the quarter were strong. The company beat Wall Street expectations. Revenue reached $64 billion. This represents a 26% increase from a year ago. However, costs and expenses also rose significantly. They went up by 68% year-over-year. The Reality Labs division continues to lose money. This unit handles AR glasses and VR headsets. Losses are expected to shrink compared to 2025 levels. The company projects losses between $18 billion and $19 billion.

Meta has been active in the AI space over the past year. It released several new models earlier this year. These include Muse Spark and Muse Glimmer. In recent weeks, the company added Muse Wonder. It also launched Muse Spark Open, an open-weight model. This allows outsiders to use and build on the underlying parameters. Meta also introduced Muse Code, a coding agent for developers. At its Connect event, the firm announced new avatars for its AI assistant, Meta Muse. These cute avatars aim to make the service more relatable and meme-able.

The AI products appear to be gaining traction. CEO Mark Zuckerberg shared specific numbers during the call. He stated that more than 10 million people in the U.S. and Canada have set up Muse personal agents. This happened in just a month and a half. He claimed the product is number one in the App Store almost every day. Zuckerberg said the product has clear product-market fit. The company is now entering a new operational phase. This phase focuses on scaling the product. He expects it to eventually serve billions of people.

Despite the growth, some issues remain. Li mentioned ongoing regulatory and legal matters. These could impact the business and financial results. The company is monitoring several active cases. There is continued scrutiny on youth-related issues in various markets. Several youth-related trials are scheduled in the coming months in the United States.