Meta's AI agent Muse grows as Meta issues new shares to fund expansion

Meta introduced new non-voting Class C shares on Wednesday to fund its costly AI expansion, while reporting strong growth for its consumer AI agent app Muse. Shares rose over 4% in extended trading after the company forecast fourth-quarter revenue above Wall Street estimates. Meta will issue the new share class in January 2027, effectively creating a two-for-one split to fund acquisitions and retain talent while preserving CEO Mark Zuckerberg's control. Zuckerberg said more than 10 million people in the US and Canada created Muse accounts in six weeks, and the company raised its annual capital expenditure forecast to between $135 billion and $145 billion. Meta reported third-quarter revenue of $64.60 billion, beating estimates, but posted a free cash flow deficit of $2.12 billion. The company faces legal challenges, including a $25 billion penalty ordered by a New Mexico judge on Wednesday over user data sharing and hate speech policies. Meta also agreed in August to pay up to $18 billion over a decade to settle claims that its platforms addicted children.