Meta issues new non-voting shares

For everyday investors holding shares in Meta, the company structure is about to change. Starting now, existing shareholders will receive a new type of equity as a dividend. These shares will not carry voting rights, meaning owners will not have a say in corporate decisions. This move is designed to help finance the company's massive spending on artificial intelligence without diluting the control of current voting holders.

The news emerged on Wednesday during Meta's third-quarter earnings report. Susan Li, the company's chief financial officer, confirmed that Meta intends to create this new class of non-voting capital stock. She explained that the shares are meant to serve as a flexible tool for raising capital, compensating employees, and funding acquisitions. By introducing this instrument, the company aims to preserve the voting power of its current Class A and B shareholders while expanding its financial toolkit.

Meta’s financial performance this quarter was robust. The company reported revenue of $64 billion, marking a 26 percent increase from the same period last year. However, these gains came with a significant rise in costs, which climbed 68 percent year-over-year. The Reality Labs division, which produces augmented reality glasses and virtual reality headsets, continued to operate at a loss. Management expects these losses to narrow, projecting a range between $18 billion and $19 billion, down from their 2025 levels.

The push into AI has been a central focus for Meta over the past year. The company has released several models, including Muse Spark and Muse Glimmer. More recently, it launched Muse Wonder and an open-weight model called Muse Spark Open. Meta also introduced Muse Code, a tool for software developers, and unveiled new avatar options for its AI assistant at its annual Connect event. These efforts are part of a broader strategy to make its AI services more relatable and widely accessible.

CEO Mark Zuckerberg highlighted the traction these products have gained. He noted that more than 10 million people in the U.S. and Canada have set up personal agents using the Muse platform in just six weeks. Zuckerberg stated that the product is now in an operational phase focused on scaling. He expressed confidence that the platform could eventually serve billions of users, citing its consistent ranking near the top of app store charts.

Despite the strong growth, Li acknowledged that legal and regulatory challenges remain. The company is actively monitoring several matters that could impact its financial results. Specifically, there is ongoing scrutiny regarding youth-related issues in various markets. Several trials concerning these matters are scheduled to take place in the United States in the coming months.

The introduction of the new stock class marks a strategic shift in how Meta manages its balance sheet. By separating voting rights from economic interest for a portion of the equity, the company aims to maintain its founder-led structure. This flexibility is intended to support continued investment in AI, a sector where Meta is seeing significant momentum across its business units.