The Market Hang panel discusses Meta's stock split (META), Tesla's possible merger with SpaceX (SPCX), and signs that demand for luxury goods is starting to wane. Guests include Nancy Tengler, Barbara Doran, Jen Saarbach, Kristen Kelly and Kenny Polcari.
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- Meta has big plans for its Muse AI agent
Meta reported better-than-expected third-quarter results with record revenue and announced a 2-for-1 stock split, under which shareholders receive one new Class C share for each share held. The highlight was its Muse AI agent: about 10 million people in the US and Canada have set up the app since launch, mostly for shopping, with average purchases above $200. Zuckerberg said Meta would earn revenue by taking a small cut of sales made through the agent and that compute efficiency could improve 10x within a year, which he believes could make Muse highly profitable over time. TD Cowen's John Blackledge estimates Muse could exceed 1 billion daily active users within five years, and Meta's leadership suggests it could happen sooner.
- A breakdown of Meta's stock split & what it means
Wall Street Skinny co-founders Jen Saarbach and Kristen Kelly discuss Meta's (META) recently announced stock split with the Market Hang panel of experts. The panel includes Nancy Tengler, CEO and CIO of Laffer Tengler Investments; Kenny Polcari, partner and chief market strategist at Slatestone Wealth; and Barbara Doran, CEO and CIO of BD8 Capital Partners.
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- Meta's new nonvoting shares create an overhang — and Wall Street wants it gone
Meta created a new class of nonvoting Class C stock that works like a 2-for-1 split, giving every Class A or Class B holder one Class C share, with trading slated to begin in January 2027. The structure lets Mark Zuckerberg raise outside capital for the AI build-out without diluting his voting control, a move partly designed to keep him working in California as a 5% billionaire's tax looms. JPMorgan analyst Doug Anmuth said issuing the stock sooner is better, as it would remove the overhang now that the Street knows nonvoting shares are coming in January 2027. Core advertising revenue rose 26% to $64.6 billion and GAAP EPS of $3.83 beat the $3.56 estimate, but shares fell 2% in premarket trading on Thursday. Anmuth called the stock move near-term noise and remained encouraged by the 2027 revenue outlook.
- Meta Delivers Another Blowout Earnings Report. Here's What Investors Need To Know
Meta reported third-quarter revenue up 26% to $64.6 billion, above the $63.4 billion expected, with ad impressions up 10% and average price per ad up 14%. Reported EPS was $3.83 after an $18.59 billion litigation settlement over teen health and a related $9.89 billion charge; excluding these, operating income would have been $22.9 billion and EPS $7.40. Headcount fell about 15% after roughly 10,000 layoffs earlier this year, and Reality Labs' loss is expected at $18–19 billion, narrowing to around $15 billion next year. Zuckerberg said more than 10 million people in North America have set up Muse personal agents and that Muse could eventually double the company's revenue. Meta will also split its stock 2-for-1 through a new non-voting Class C share dividend, executed on January 19, 2027, with shares trading around $700.
- Meta Platforms Q3 Earnings Call Highlights
Meta Platforms’ third-quarter revenue rose 26% to $64.6 billion on stronger advertising demand, higher engagement and AI-driven improvements, with ad impressions up 10% and the average price per ad up 14%. Expenses jumped 68% to $51.6 billion, including a $9.9 billion charge tied to an August 2026 agreement with multiple state attorneys general, pulling GAAP operating income down 37% to $13 billion. Excluding the legal charge, CFO Susan Li said operating income would have risen 11% year over year, while capital expenditures of $34.9 billion pushed free cash flow to negative $2.1 billion. Meta forecast fourth-quarter revenue of $73 billion to $76 billion and announced a two-for-one stock split expected to begin trading in late January 2027. CEO Mark Zuckerberg said more than 10 million people in the U.S. and Canada had set up its Muse AI agent in roughly six weeks, with shopping the most common use case.
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