Meta Creates Non-Voting Class C Stock, De Facto 2-for-1 Split Set for January 2027
META sits 38% above its 52-week low of $520.26.
Summary
Meta will issue a one-for-one dividend of new non-voting Class C shares to every Class A and Class B holder, effective January 2027 — economically a 2-for-1 split that leaves the share count doubled but voting power untouched. The company paired it with a Founder Alignment Agreement with Mark Zuckerberg, which locks in his control while the non-voting float grows. This follows the 8-K and PRE 14C filed this afternoon laying out the same recapitalization. The governance change is the headline, but the earnings release alongside it carries the numbers: Q3 revenue of $64.6B beat the $63.37B consensus, EPS came in at $3.83, and a $9.89B legal charge dragged operating margin to 20%. Q4 revenue guidance of $73B-$76B brackets the $73.73B estimate, while FY capex was narrowed to $135B-$145B and FY expenses guided to $175B-$179B. Reality Labs losses are expected at $18B-$19B this year, narrowing to about $15B next year.
At the time of this announcement, META was trading at $720.51 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.8T. The 52-week trading range was $520.26 to $779.82. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.