Meta is planning what is effectively a 2:1 stock split for next year. Strong results came in as well.
Meta $META reported Q3 yesterday and also announced a major change to its share structure.
• Revenue: USD 64.6B, up 26% year over year
• Market expectations were around USD 63.4B
• EPS: USD 3.83, but results were weighed down by a one-off legal expense of USD 9.9B
• Without this expense, EPS would have been approximately USD 7.40
• For Q4, Meta expects revenue of USD 73–76B
And now for the more interesting part—in January 2027, Meta plans to issue one new non-voting Class C share for every existing share. The resulting effect should be similar to a traditional 2:1 split.
This will give the company greater flexibility to finance AI investments, acquisitions, and employee compensation without Mark Zuckerberg losing voting control.
In our view, the results were strong and advertising is still performing well. The main question mark remains the enormous investment in AI—this year's CapEx is expected to be USD 135–145B. But if Meta can gradually monetize AI, the current pace of investment could make sense in the long term.
Do you have Meta in your portfolio? And what do you think of the planned split and the current massive investments in AI? 👇