News · October 22, 2026, 05:33 UTC · Based on reporting by Yahoo Finance, Business Insider; the original documents or statements were not available to us at the time of publication.
Meta Platforms said it will distribute a new class of nonvoting stock to existing investors and raised the lower end of its 2026 capital spending outlook, according to its quarterly earnings report released on Wednesday, October 21, 2026. The announcement came as the company reported third-quarter revenue of $64.2 billion, up 26% from a year earlier.
The new shares will be issued as a stock dividend, with holders receiving one share of the new class—a structure Meta described as effectively a two-for-one stock split. Trading in the new stock is expected to begin in January, the company said. However, brokertable.net has not reviewed the original earnings release or the board’s materials; instead, the details here are based on reporting by Bloomberg and Business Insider.
What happened
Meta’s capital expenditures will be $135 billion to $145 billion in 2026, the company said in the report, raising the bottom of the range from $130 billion. Meanwhile, third-quarter capital expenditures were $34.91 billion, according to Business Insider’s account of the earnings report.
The company also disclosed a roughly $10 billion charge in the quarter, Bloomberg reported. Earnings per share were $3.57 including the charge; excluding it, adjusted EPS would have been $7.40, according to the Bloomberg report.
On the new share class, Meta said the creation of Class C common stock will continue the founder-led model that has driven its success, Business Insider reported. A Special Committee established by Meta’s board determined that CEO Mark Zuckerberg was the best fit to lead the company, citing his creative vision and management abilities, according to the outlet. Meta also said the stock class will give it the ability to finance its growth as it spends heavily on AI and the data centers needed to power it.
Business Insider noted that other technology companies have issued stock to raise capital without diluting a chief executive’s voting power, citing Google’s 2012 split for a similar reason. Semafor was first to report the new stock class, the outlet said.
Analysis: Why it matters for investors
The structure may matter less for the economics of each share than for control. Because the new class carries no votes, the dividend can expand Meta’s share count without changing the balance of voting power, which the board tied explicitly to keeping Zuckerberg in place. Investors who weight governance heavily may view that differently from those focused on the capital-raising flexibility it provides.
The spending outlook is the other variable. The narrowed range still implies a very large commitment to AI infrastructure, and the midpoint moved up relative to consensus, per Bloomberg’s discussion of the figures. Whether that spending translates into better ad targeting and higher revenue per user is the question the company still has to answer, the Bloomberg segment noted, since advertising remains the bulk of revenue and the current strength is driven by pricing rather than volume.
Who is affected
Existing shareholders are directly affected because the stock dividend will apply to them, with one new share per holder and trading expected to start in January. Employees and management are affected through the governance structure, which the board framed as preserving founder leadership. Advertisers are affected indirectly, since the spending plans are aimed at improving the ad business that generates most of Meta’s revenue.
What is still uncertain
The sources do not say what the record date for the stock dividend will be or how the new class will be priced once it begins trading. Bloomberg reported that Meta continues to face legal scrutiny on youth-related issues globally, and the ultimate cost of that litigation is not quantified in the material reviewed. It is also unclear how much of the AI spending will show up in measurable ad performance versus longer-term projects.
Conclusion: What to watch next
Three things are worth tracking. First, the mechanics of the stock dividend, including the record date and the January trading start. Second, the company’s fourth-quarter tax rate, which Meta put at 15% to 17%, and any further changes to the capex range. Third, evidence that AI investment is lifting ad pricing and revenue per user, the metric Bloomberg’s segment identified as the key test of the spending case.
Sources
- Yahoo Finance: Meta Boosts Bet on AI With Spending Outlook, New Stock Class (published 2026-10-21)
- Business Insider: Meta performs stock split to keep Mark Zuckerberg in control (published 2026-10-21)
Sources accessed on October 22, 2026. Figures as reported by the sources above.
Frequently Asked Questions
What did Meta announce on October 21, 2026?
Meta announced a new class of nonvoting stock to be distributed to existing shareholders as a stock dividend, and it raised the low end of its 2026 capital spending outlook to $135 billion from $130 billion. The company disclosed both in its quarterly earnings report.
Is the new share class a stock split?
Meta said the distribution would effectively amount to a two-for-one stock split for existing shareholders, with holders receiving one share of the new class. Trading in the new shares is expected to begin in January.
Why is Meta creating a nonvoting share class?
According to Business Insider, Meta listed several reasons, including keeping CEO Mark Zuckerberg in control and giving the company the ability to finance its growth. A board Special Committee determined Zuckerberg was the best fit to lead the company.
What were Meta's third-quarter results?
Revenue was $64.2 billion, up 26% year over year, according to Bloomberg's report on the earnings. Earnings per share were $3.57 including a roughly $10 billion charge, or $7.40 on an adjusted basis excluding it.
How much is Meta spending on AI infrastructure?
Meta said capital expenditures will be $135 billion to $145 billion in 2026, and third-quarter capital expenditures were $34.91 billion, per Business Insider. The spending is tied to AI and the data centers needed to power it.
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