Meta shares fall despite strong Q3 as AI costs weigh

Meta shares fell over 1% in premarket trading Thursday despite beating third-quarter revenue expectations, as investors weighed the costs of aggressive AI expansion and a new non-voting share class plan. Revenue rose 26% to $64.6 billion, exceeding analyst forecasts, with advertising generating $63.06 billion. Meta guided fourth-quarter revenue to a midpoint of $74.5 billion, above consensus. Diluted EPS was $3.83 after a $9.89 billion charge tied to an August teen mental health settlement. The proposed Class C non-voting shares, effective January 19, 2027, aim to fund AI ambitions while preserving voting power. Meta raised its 2026 capital expenditure forecast to $135-145 billion, and a New Mexico judge ordered a $25 billion data-privacy penalty. Analysts remain mostly positive, though Piper Sandler cut its price target to $850.