Meta’s revenue surges to $64.6 billion, but billions in settlements and skyrocketing AI spending turn screws on profit, free cash flow

Mark Zuckerberg’s Meta Platforms grew revenues 26% year-over-year in the third quarter, topping analyst targets, but saw its operating margin cut in half due to billions in legal payments to settle litigation over its product’s impact on teen mental health. Investors focused on the company’s revenue growth and the traction of its new AI tools, sending shares up more than 4% in after hours trading on Wednesday. Meta’s third-quarter revenue rose 26% to $64.6 billion, above the $63.3 billion analysts expected, according to Visible Alpha consensus from S&P Global Market Intelligence.

Source: Fortune Crypto