Meta confirmed plans during Wednesday's earnings call to introduce a non-voting stock class that could help finance the company's AI expansion. Semafor reported earlier on Wednesday that Meta might issue such shares. Non-voting shares provide no voting rights over company decisions. Chief financial officer Susan Li said Meta will distribute the new shares to all existing shareholders through a stock dividend.
Li said Meta designed the publicly traded stock for fundraising, employee compensation, acquisitions and other general corporate uses. Li said the arrangement would retain the voting power held by existing Class A and Class B shareholders. Li said the shares would maintain Meta's founder-led structure. Li also said the new stock would broaden Meta's financing options and provide flexibility to invest in unprecedented, AI-driven momentum throughout the business.
Meta's third-quarter results exceeded Wall Street expectations. Meta reported revenue of $64 billion, a 26% increase from a year earlier. However, Meta's costs and expenses increased 68% year over year. Reality Labs, which develops Meta's augmented-reality glasses, virtual-reality headsets and virtual-reality software, continues to record losses, although those losses have declined. Meta's earnings report forecast that Reality Labs losses would fall from 2025 levels to between $18 billion and $19 billion.
Meta has expanded the company's AI efforts over the past year. Meta released AI models Muse Spark and Muse Glimmer earlier this year. Meta introduced Muse Wonder and Muse Spark Open in recent weeks. Muse Spark Open is an open-weight model with publicly accessible parameters that outside users can use and develop further. Meta also introduced Muse Code, a coding agent for software developers. At this year's Meta Connect event, Meta announced a range of cuddly avatars for the Meta Muse AI assistant to make the services more relatable and suitable for memes.
CEO Mark Zuckerberg said during Wednesday's earnings call that more than 10 million people across the United States and Canada had configured Muse personal agents in just a month and a half. Zuckerberg said growth remained strong and Muse had ranked first in the App Store on almost every day. Zuckerberg said Muse had established product-market fit and was moving into a more operational phase focused on expansion. Zuckerberg said Meta expects Muse eventually to reach billions of people.
Li said Meta was monitoring ongoing legal and regulatory matters that could significantly affect the company's business and financial results. Li said youth-related issues continued to attract scrutiny in several markets. Li also said Meta had several youth-related trials scheduled in the United States over the coming months.
Meta to Issue Non-Voting Stock to Fund AI Expansion
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Summary
Meta announced a new class of non-voting stock to fund its AI expansion, with shares to be distributed as a dividend to existing shareholders. The move aims to boost financing for AI-driven growth while preserving voting power and the founder-led structure, according to CFO Susan Li. Traders are watching altcoins to watch closely amid shifting market sentiment, with the fear and greed index showing mixed signals ahead of major tech moves.
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