META REVENUE SURGES TO $64.6 BILLION , BUT SETTLEMENTS AND SKYROCKETING AI SPENDING TURNS SCREWS ON PROFIT

What happened: Meta reported third quarter revenue above analyst estimates and forecast continued growth, while legal settlements and AI spending cut operating margins and pushed free cash flow negative. Why it matters: Investors looked past the short term margin hit to early traction with the Muse AI agent, and Zuckerberg said monetization would come sooner than Meta's usual playbook. A New Mexico judge ordered $25 billion in penalties tied to Cambridge Analytica, which Meta plans to appeal. Coverage: 3 outlets in 24h

Meta reported third quarter revenue above analyst estimates and forecast continued growth, while legal settlements and AI spending cut operating margins and pushed free cash flow negative.

Investors looked past the short term margin hit to early traction with the Muse AI agent, and Zuckerberg said monetization would come sooner than Meta's usual playbook. A New Mexico judge ordered $25 billion in penalties tied to Cambridge Analytica, which Meta plans to appeal.