Meta falls 6% amid losses and higher costs
Meta announced a decline in its financial performance during the third quarter of the year, recording negative free cash flows of $2.12 billion for this period, with capital expenditures rising between $135 billion and $145 billion — a level higher than previous expectations. This led to a 6% drop in the company's stock, amid investor concerns over growing creditworthiness issues as the company expands its artificial intelligence investments and faces rising five-year credit risk costs. Nevertheless, its revenues grew by 26% to reach $64.6 billion, surpassing analyst expectations, but earnings per share stood at $3.83, below the anticipated $5.75 per share. Meta announced plans to issue a new class of shares to support financing and growth, also indicating that the new stock plan convinced Mark Zuckerberg to stay in California due to fears of potential wealth taxes.
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