Meta adjusted its capital expenditures estimate for the year to between $135 billion and $145 billion, Meta announced plans to issue a new class of non-voting shares during its third-quarter earnings report, aiming to fund massive artificial intelligence investments and future acquisitions. Trading for the new stock is slated to begin in 2027.
Meta is restructuring its stock categories to support its ongoing artificial intelligence expansion. As detailed in its third-quarter earnings report, the company is issuing a new class of non-voting stock that will also fund employee compensation and potential acquisitions when trading commences in 2027.
Meta Raises Spending Projections for Infrastructure
The scale of infrastructure spending required to remain competitive has pushed financial projections upward. Meta adjusted its capital expenditures estimate for the year to between $135 billion and $145 billion, up from a previous range of $130 billion to $145 billion.
Susan Li, Meta’s chief financial officer, explained during an earnings call that the newly structured shares will expand our funding tools and give us flexibility to invest behind the unprecedented momentum we’re seeing across every part of our business driven by AI.
Expenses Climb While Quarterly Performance Beats Expectations
Costs and expenses climbed by 68 percent year over year, even as Meta’s quarterly performance surpassed Wall Street expectations.
Reality Labs, the division developing augmented reality glasses, virtual reality headsets, and software, continued to log losses, though those deficits are expected to shrink.
AI Push Includes Several Muse Models
Meta’s AI push includes the rollout of several models over the past year, including Muse Spark, Muse Glimmer, Muse Wonder, the open-weight Muse Spark Open, and Muse Code, a software coding agent.
Zuckerberg added that Muse has reached product-market fit and regularly claims the top spot on the app store.
Non-Voting Shares Preserve Founder-Led Governance
The introduction of non-voting shares is structured to maintain the voting power held by current Class A and Class B shareholders, preserving the company’s founder-led governance model. Meta plans to distribute the new shares to existing shareholders through a cash dividend on stock.
Alongside its financial and technological updates, Meta’s leadership is monitoring external legal challenges. Susan Li noted that youth-related lawsuits continue to draw scrutiny across multiple markets, with several trials scheduled in the United States over the coming months.
