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Meta Q3 Financial Report: Revenue grew by 26%, meeting expectations, while the billion-dollar legal expenses and AI capital expenditures pose a dual challenge

Meta announced its third-quarter 2026 performance early this morning Beijing time, with revenue of $64.601 billion, a year-on-year increase of 26%, exceeding market consensus expectations (approximately $63.3 to $63.7 billion). Net profit was $9.860 billion, a year-on-year increase of 264%, with a GAAP diluted earnings per share of $3.83.Operating profit decreased by 37% year-on-year to $12.988 billion, and the operating profit margin fell to about 20% (compared to about 40% in the same period last year), mainly due to a legal expense of $9.89 billion. This expense is related to the agreement reached with the attorneys general of various states in the U.S. regarding lawsuits related to youth mental health and social media, with a total payment cap of approximately $18.59 billion. Excluding this expense, operating profit was $22.88 billion, corresponding to an adjusted diluted earnings per share of approximately $7.40.The significant year-on-year growth in net profit was also influenced by the low base effect of the previous year's effective tax rate, which was as high as 87%; the effective tax rate for this quarter was 24%. Ad impressions increased by 10% year-on-year, and the average ad price rose by 14%. Family daily active people were approximately 3.64 billion, a year-on-year increase of 3%. Family of Apps revenue was approximately $64.16 billion, of which ad revenue was about $63.06 billion; Reality Labs revenue was approximately $443 million, with an operating loss of about $4.13 billion.Capital expenditures for the third quarter (including principal payments on finance leases) were approximately $34.9 billion, with free cash flow of negative $2.12 billion, and cash, cash equivalents, and marketable securities at the end of the quarter were approximately $82.4 billion. The company expects fourth-quarter revenue to be between $73 billion and $76 billion. The full-year capital expenditure guidance has been narrowed to $135 billion to $145 billion, and the full-year expense guidance has been raised to $175 billion to $179 billion, mainly due to the inclusion of legal expenses; excluding this expense, full-year operating profit is still expected to be higher than in 2025. The company also expects Reality Labs operating losses in 2026 to be approximately $18 to $19 billion, with hopes of narrowing next year.According to Gate market data, possibly influenced by the earnings report information, META's stock price rose by 2.17% in after-hours trading.

first_img Fairshake's affiliated PAC spent approximately $190,000 on advertisements in the Massachusetts primary

The political action committee Protect Progress PAC, affiliated with the cryptocurrency industry supporter Fairshake, has spent approximately $189,000 on media advertising ahead of the primary election in Massachusetts's 4th congressional district, supporting Democratic Congressman Jake Auchincloss's re-election campaign. Records from the Federal Election Commission (FEC) show that this expenditure is Fairshake's latest move in the 2026 election, following over $130 million spent on advertising and media promotion during the 2024 election cycle.The Massachusetts primary is scheduled to take place on Tuesday local time. Democratic candidate Jason Poulos sent a letter to Auchincloss on August 16, requesting that he "publicly condemn" Protect Progress's involvement. Poulos stated that some of the funds were used to create "AI-generated spam" supporting Auchincloss, and pointed out that the latter has directly accepted $77,500 in donations from cryptocurrency industry sources since 2020. Auchincloss also voted in favor of the Digital Asset Market Structure Act in July 2025, which is currently under Senate review and has not yet been signed into law.In August, Fairshake and its affiliates invested approximately $3.6 million in congressional campaigns in Alaska, Florida, and Wyoming. Fairshake reported that it has about $122 million in cash ahead of the 2026 midterm elections. Massachusetts will be one of the last states in the U.S. to hold its primary this year, with just over two months remaining until the general election in November.

BlackRock hopes to advertise its Bitcoin spot ETF on building exteriors

ChainCatcher news, according to CryptoSlate, BlackRock submitted a document to the U.S. Securities and Exchange Commission (SEC) on January 31 proposing a plan to project Bitcoin ETF advertisements on the sides of buildings. The document briefly describes BlackRock's plan, stating, "The IBIT advertisement is an animation designed to be projected onto the exterior walls of financial institutions in New York City, Miami, and Los Angeles. This storyboard uses the exterior wall of a building in Miami as a template." Most of the projection features "IBIT."Additionally, each image displays a timeline of events leading up to the launch of BlackRock's spot Bitcoin ETF in January of this year. Certain images depict the launch of the first stock market in the U.S. in 1790, the launch of the first ETF in the U.S. in 1993, the launch of Bitcoin in 2009, and the launch of the first Bitcoin futures contract in 2017. Other scenes feature phrases like "Entering a New Era" and "The Spot Bitcoin ETF is Here."BlackRock intends to project the advertisements onto former bank buildings. It is currently unclear whether BlackRock plans to advertise only on its own properties or intends to rent properties from other companies. The building featured in the advertisement appears to be a shared building located at 360 Rosemary Ave, West Palm Beach, Florida. BlackRock previously released a more traditional advertisement for IBIT on January 14. Compared to competing advertisements from companies like Hashdex, VanEck, and Bitwise, this advertisement was recognized for its straightforwardness and informative content.
BlackRock hopes to advertise its Bitcoin spot ETF on building exteriors
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