"Meta recorded a nearly $16 billion onetime charge in the third quarter related to President Donald Trump's so-called big beautiful bill, and said its capital expenditure next year would be "notably larger" than in 2025. Shares of the company fell around 6% after the bell. Excluding the charge, Meta said its third-quarter net income would have increased by $15.93 billion to $18.64 billion, compared to the reported net income of $2.71 billion."
"Meta has been doubling down on AI, with a target of achieving superintelligence, a theoretical milestone where machines could outthink humans. To that end, Meta reorganized its AI efforts under the Superintelligence Labs unit in June, following senior staff departures and a poor reception for its Llama 4 model. CEO Mark Zuckerberg has personally led an aggressive talent hiring spree and has said that the company would spend hundreds of billions of dollars to build several massive AI data centers for superintelligence."
"Meta continues to benefit from its massive user base. The company's powerful AI-optimized ad platform helps marketers automate campaigns, improve the quality of video ads, translate ads, and generate persona-based images to target different customer segments. The company has launched ads on its messaging platform WhatsApp and social network Threads, directly competing with platforms such as Elon Musk's X, while Instagram's Reels continue to jostle with ByteDance 's TikTok and YouTube Shorts for ad revenue in the short-video market."
Meta recorded a nearly $16 billion onetime charge in the third quarter tied to President Donald Trump's so-called big beautiful bill, producing a large reduction in reported net income. Excluding the charge, third-quarter net income would have risen to $18.64 billion. The company now forecasts capital expenditure of $70–72 billion next year and says capex will be notably larger than in 2025. Meta is expanding ad placements across WhatsApp, Threads and Reels, enhancing AI-powered ad tools, reorganizing AI under Superintelligence Labs, hiring aggressively, buying Nvidia chips, and securing a $27 billion Hyperion data center financing deal.
Read at Fast Company
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