Meta reshapes stock to fund AI and retain Zuck

Meta kicked off Big Tech’s earnings season after Wednesday’s market close, beating revenue expectations. However, legal expenses related to its teen mental health settlement weighed on GAAP earnings per share.

The company also announced a 2-for-1 stock split to finance its AI development efforts, granting one non-voting Class C share for every Meta Class A share held.

The move keeps CEO Mark Zuckerberg’s voting power intact, while a board-appointed committee reaffirmed that his long-term leadership is in Meta’s best interests.

Investor enthusiasm has grown following the September launch of Muse, Meta’s AI assistant, which offers subscriptions priced at $20 and $100 per month. The service has surpassed 10 million downloads, while Meta’s stock has gained nearly 20% over the past month.