Meta's Muse growth hits 10 million users as legal costs weigh on earnings

Meta CEO Mark Zuckerberg reported over 10 million Muse accounts in the US and Canada within six weeks, but Meta's stock fell over six percent Thursday amid mounting legal costs, including a $25 billion penalty in New Mexico. Meta's third-quarter revenue beat estimates at $64.60 billion, with fourth-quarter projections up to $76 billion. Zuckerberg expects Muse to eventually serve billions, while Reality Labs losses should narrow to $15 billion next year as AI becomes the focus. Legal challenges include an $18 billion settlement over teen addiction and ongoing privacy scrutiny. Meta introduced non-voting shares to fund AI expansion, competing with OpenAI and Anthropic, though some enterprises restrict Muse over security concerns.