📱 $META Street Takeaways - Meta Platforms Q3 Earnings ($680.20 -$17.32) Overview: • Shares (2.5%). Revenue +26.1% y/y beat by 2.0%. EPS ex-items also ahead by 13.1%/$0.86. OM ex-legal charge 340bps above consensus. CapEx $33.94B vs SA $40.95B. Free cash flow $2.12B vs SA ($9.22B). • Daily active people +3% y/y missed by (0.3%). ARPP 2.3% above. • Q4 revenue guided above at the mid. FY CapEx range narrowed toward high end of prior range. • Intends to file a restated certificate of incorporation in Delaware to establish Class C common stock, effective date of 19-Jan-27. • Analysts were positive on the results and outlook. While compute remains something of a limiting factor in Muse development, solid trends for the product were highlighted as >10M have deployed in the US and Canada with retention materially better than that seen in Threads rollout. Furthermore, shopping the primary use case viewed as positive indicator of future capacity for monetization. Significant runway seen remaining in core ads with FOA revenue +26% y/y in Q3 on 10% growth in impressions and 14% in average price per ad. Record engagement for Facebook and Instagram pointed to while MAUs for other apps are also solid. New class of shares seen enabling capital raises without diluting Mr. Zuckergberg. $META #META# #Earnings# #MetaPlatforms# #Tech# #Facebook# #instagram# #Muse# #Threads# #Ai# #SocialMedia# #EPS# #Zuckerberg# #FinTwit# #CapEx# Gain immediate access to earnings insights with #StreetAccount#:

Meta Platforms ($META) will create a new class of non-voting shares, giving the company another way to raise capital while allowing CEO Mark Zuckerberg to maintain voting control. Meta’s board declared a dividend of one Class C share for every outstanding Class A and Class B share, with the recapitalization taking effect Jan. 19, 2027. The Class C shares will carry no voting rights. Entities tied to Zuckerberg and Priscilla Chan, which control 56.1% of Meta’s voting power, already approved the change, meaning shareholders will not vote on it. Meta said the new shares could be used to raise capital, compensate employees and fund acquisitions without diluting existing voting control. The company expects to sell Class C shares periodically. World Trade Securities CEO Nicholas Mugalli said the structure could signal “more capex coming,” particularly as Meta already expects 2026 capital expenditures of $135 billion to $145 billion amid its aggressive AI infrastructure buildout. Others highlighted the trade-off for investors. Future Class C issuance could dilute shareholders economically while leaving Zuckerberg’s control largely unchanged. The structure resembles Alphabet’s 2014 creation of non-voting shares and initially functions economically much like a 2-for-1 stock split, with shareholders receiving an additional share without changing the total underlying value. The move comes alongside strong third-quarter results. Meta reported revenue of $64.6 billion versus $63.37 billion expected and adjusted earnings of $7.40 per share versus $5.74 expected. Fourth-quarter revenue guidance of $73 billion to $76 billion also came in around or above Wall Street expectations.