Meta's Q3 earnings dip as settlement and fine hit profit
Meta reported lower-than-expected profit for the third quarter, citing a large settlement with U.S. states and a $25 billion fine.
Meta's latest financial results show a profit decline relative to market expectations, driven by a multi-state settlement related to accusations of designing addictive products for children and harvesting their data. The settlement cost is recorded in the quarter's expenses, and a New Mexico court also levied a $25 billion fine for user-data deception. Despite the profit hit, the company's revenue rose 26 percent to just under $65 billion, beating the forecast of $63.3 billion.
Meta expects fourth-quarter revenue between $73 billion and $76 billion, outpacing analysts' $73.6 billion estimate. Shares rose about seven percent in after-hours trading following the release.
Why it matters
The settlement and fine significantly affect Meta's earnings and highlight regulatory pressure on big tech.
How this story developed
- Oct 21 New Mexico Jury Orders Meta to Pay $25 Billion for Data Privacy Deception
- Oct 22 Meta announced it will appeal the New Mexico judgment.
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