Episode summary
Earnings Special: Meta Boosts Bet on AI With Spending Outlook, New Stock Class | Bloomberg...
Bloomberg Daybreak: US Edition
· · 20 min · Hosts: Carol Massar, Tim Stenovec · Guests: Ed Ludlow
Summary
Meta reported record quarterly revenue of $64.2 billion, up 26% year over year, and its outlook beat expectations at $73 billion to $76 billion for fourth-quarter revenue. Ed Ludlow said the core advertising business is still doing the heavy lifting, with pricing rather than volume driving the strength, even as Meta keeps emphasizing AI.
Key takeaways
- Meta’s revenue beat and record quarter suggest ad demand remains strong, with Ed Ludlow saying pricing, not volume, is driving the business.
- Meta raised fiscal 2026 capital spending to $135 billion to $145 billion and lifted total expense guidance to $175 billion to $179 billion after a roughly $10 billion legal charge.
- The board approved a new publicly listed non-voting class C stock, effective January 2027, which Ed Ludlow said is meant to give Meta equity currency for AI without diluting Mark Zuckerberg’s control.
- Meta did not provide fiscal 2027 revenue guidance, which Ed Ludlow said leaves investors with a less detailed picture of next year’s spending and growth plans.
- The filing’s warning about California’s Prop 40 and Zuckerberg’s possible relocation added another governance angle to the stock-structure move, according to Ed Ludlow.
Notable quotes
“revenue of $64.2 $2 billion is up 26% year-over-year. It's a beat of expectations, but for Meta as a as a moment in time, it's their highest revenue in a quarter ever”
“the ad side, how does AI make ads more valuable? Um and at the end of the day, the advertising storing is just very strong. It's pricing. It's not volume”
“the capex range is just like we're well through the year. Um, and it's narrower 145 uh 35 billion to 145 billion on the capex side”
“The board has approved a new class of publicly listed non- voting class C common stock with an effective date in January 2027”
“this is as much about Meta um creating non voting stock to give it kind of equity currency in the AI era without impacting Mark's control”
How the episode opens
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From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- meta ai spending
- earnings outlook
- new nonvoting stock class
- after-hours stock reaction
- ai capex
Companies and tickers mentioned
- META
- Meta Platforms
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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