Meta earnings live: Meta beats Q3 revenue expectations, announces 2-for-1 stock split

Meta Platforms Inc. (META) reported its third-quarter earnings on Wednesday, surpassing revenue expectations while experiencing a decline in GAAP earnings per share due to legal expenses related to a settlement concerning teen mental health issues. The tech giant also announced a significant 2-for-1 stock split, which will convert each Class A share into a non-voting Class C share for shareholders.

This strategic move aims to maintain CEO Mark Zuckerberg’s control over the company while providing the necessary financial flexibility to support its ongoing investments in artificial intelligence.

For the quarter, Meta achieved a record revenue of $64 billion, exceeding analysts' predictions of $63.3 billion. The GAAP earnings per share were reported at $3.83, which also exceeded the expected $3.56. However, it is important to note that the earnings would have reached $7.40 per share without the impact of the legal fees.

In the same period last year, Meta reported earnings per share of $1.05 and revenue of $51.2 billion, highlighting a significant year-over-year growth in both metrics.

Additionally, Meta revised its capital expenditure forecasts, increasing the lower end of the range from between $130 billion and $145 billion to between $135 billion and $145 billion. This adjustment reflects the company’s commitment to investing in its future growth initiatives.

The earnings report marks a strong start for the technology sector's earnings season as investors remain focused on how major companies are navigating the current economic landscape. Meta's performance suggests a robust demand for its services and products, despite the challenges posed by legal issues and market conditions.