Meta will issue new non-voting shares to raise funds for AI investment, The Wall Street Journal (WSJ) reported on Oct. 21 local time.

The report said Meta disclosed plans in its third-quarter earnings announcement to create a new Class C common stock. The new shares will take effect in January 2027. It will not affect CEO Mark Zuckerberg’s voting control.

Meta’s third-quarter revenue rose 26 percent from a year earlier to $64.6 billion. Net profit was $9.8 billion, missing analysts’ estimate of $17.2 billion. A $9.9 billion settlement cost related to lawsuits over social media harm affected net profit.

Meta set this year’s capital spending at at least $135.0 billion. Free cash flow posted a $2.1 billion deficit for the first time since the company went public. Free cash flow is the money left after subtracting spending such as capital expenditure from cash generated from operations. Meta shares rose 6 percent in after-hours trading.

Meta is placing its AI agent "Muse," released in September, at the center of its business. Truist Securities forecast Muse could generate an additional $28.5 billion in revenue by 2030.

Litigation costs are also weighing on results.

Meta reached a settlement in August with 48 states for up to $18.0 billion. On Oct. 21, a New Mexico court ordered Meta to pay $25.0 billion. A jury found Meta deceived users over its data privacy practices.