Meta's advertising revenue rose 26% to $63.06 billion as ad impressions grew 10% and average price per ad climbed 14%, while Reality Labs posted a $4.13 billion operating loss on $443 million in revenue. For the fourth quarter, Meta projected revenue of $73 billion to $76 billion, compared with expectations of $73.68 billion, and approved a new non-voting Class C common stock taking effect in January 2027 via a one-for-one stock dividend on Class A and Class B shares. Shares rose 3% to 5% in after-hours trading, with the chief financial officer stating that AI returns in the core business alongside model advances such as Muse and Muse Wonder "position us to sustain strong overall revenue growth throughout 2027."
Reporting after the bell alongside Meta, Tesla posted third-quarter adjusted earnings of $0.48 a share on revenue of $28.05 billion, beating IBES consensus estimates of $0.43 a share and $27.88 billion and ending a streak of six consecutive quarterly earnings misses. Tesla generated $1.53 billion in positive free cash flow against expectations for negative $4.92 billion, even with $4.73 billion in capital expenditures as it began high-volume Optimus production in Fremont and launched Cybercab Robotaxi rides in Austin. GAAP gross margin expanded 160 basis points year over year to 19.6%, topping the 17.8% estimate, while active Full Self-Driving subscriptions jumped 67% to 1.74 million.