Meta's strong quarterly results were overshadowed by concerns over AI spending, sending shares down 7% on Thursday. Bears point to dilution risk, as Meta plans new non-voting Class C shares to fund AI infrastructure and free cash flow turned negative in the quarter. A New Mexico judge also ordered Meta to pay a $25 billion penalty over the Cambridge Analytica scandal, which the company plans to appeal, and Meta booked a $9.89 billion legal settlement charge in the quarter. Bulls argue the core business remains strong, with the new Muse app off to a strong start, and CFO Susan Li said in-house content models are outperforming prior versions in offline tests.
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METAearningsAI investmentCambridge Analytica
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Related tickers and likely impact
META
• NeutralMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/21/2026 | 698.43 |
| Change that session | +0.60% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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