Meta Revenue Surges 26% to $64.60 Billion

Key Takeaways

• Meta's Q3 revenue hit $64.60 billion, up 26% year-over-year, beating expectations
• Meta raised its 2026 capital spending forecast to $135 billion-$145 billion for AI infrastructure
• Meta's Muse AI agent has over 10 million users in the US and Canada within six weeks
• US federal agencies ordered removal of DeepSeek AI products from government systems over security risks
• Meta's stock fell over 7% despite strong results due to concerns about heavy AI spending
• Shopify shares rose 33% after integrating Meta's Muse AI agent into Shop Pay checkout
• Anthropic IPO is being watched closely as a test of investor appetite for AI despite growing doubts
• Ory launched new Build and Deploy tools for its Agent Security platform to add identity and safety controls
• A law firm advises companies to test AI agents carefully before full deployment
• AI-driven cyberattack exposed weaknesses across 70% of the internet, raising cybersecurity concerns

Meta Bets Big on Muse AI Agent for Shopping and Beyond

Meta CEO Mark Zuckerberg is positioning Muse as the company's main AI agent. More than 10 million people in the US and Canada set up Muse in six weeks. About 25% use it daily, and over a quarter of users shop through it with average purchases above $200. Meta wants Muse to power smart glasses and enterprise software, but high costs remain a challenge.

Meta Beats Q3 Estimates and Approves New Share Class

Meta reported Q3 revenue of $64.60 billion, up 26% from a year earlier, beating analyst expectations. Earnings per share reached $3.83, helped by strong advertising growth. The company approved a new nonvoting Class C stock set to take effect on January 19, 2027. Meta also raised its full-year capital spending forecast to $135 billion to $145 billion for AI infrastructure.

Meta Stock Falls Over 7% Despite Strong Q3 Results

Meta's stock dropped more than 7% even after beating Q3 revenue expectations of $63.3 billion. The company reported all-time high revenue of $64.6 billion and earnings per share of $3.83. Concerns about heavy AI spending and high capital costs weighed on investor sentiment. Meta also announced a new nonvoting share class and raised its capital expenditure forecast.

Meta Has Big Plans for Muse AI Agent

Meta's Muse AI agent has drawn over 10 million users in the US and Canada since launch. Shopping is the most common use case, with average purchases over $200. CEO Mark Zuckerberg says Muse is expensive to run but expects compute costs to improve tenfold within a year. Meta sees Muse as a key growth driver alongside its advertising business.

Zuckerberg Says Meta Will Build Superintelligence Through Scaling

Mark Zuckerberg told analysts Meta can reach superintelligence by scaling up its AI models. Larger models are already in training, and smaller efficient versions are being built for agents like Muse. Meta reported Q3 revenue of $64.6 billion and raised its full-year expense outlook to $175 billion to $179 billion. The company also plans a new nonvoting share class for shareholders.

Meta raises AI spending plan and adds new stock class

Meta announced higher capital spending of $135 billion to $145 billion for 2026. It also plans a new non-voting stock class to be distributed as a dividend. CEO Mark Zuckerberg said AI investments are paying off. Third-quarter revenue rose 26 percent to $64.6 billion. The new shares will begin trading in January.

Meta shares rise as AI investments drive strong results

Meta shares rose about 5 percent after strong quarterly results. Revenue grew 26 percent to $64.6 billion, helped by AI recommendations and more ads. More than 10 million people in the US and Canada use the Muse AI assistant. Net income reached $9.86 billion, or $3.83 per share. Meta raised its 2026 spending estimate to $135 billion to $145 billion.

Federal agencies order DeepSeek AI products removed

New FASCSA orders from DHS, DoW and DNI require removal of DeepSeek AI products. The orders name DeepSeek models as covered articles that must be excluded from federal procurement. Agencies must remove these tools from federal systems and contracts. DHS cites security threats and data risks tied to the Chinese company. Contractors must report any DeepSeek use within three business days.

US moves to remove DeepSeek from government systems

The US government has moved to block DeepSeek from federal systems beyond just the chatbot. DHS cites risks that data could reach China or be used to build intelligence on government users. DeepSeek's privacy policy says data may be stored in China and used to train models. The restrictions cover products built using DeepSeek technology. The rules apply to government systems, not private use by Americans.

Investors keep backing AI despite growing doubts

Investors continue to pour money into AI despite rising concerns. Private market exits are taking longer and valuations remain high. The Anthropic IPO is being watched closely as a test. Meta's revenue rose 26 percent to $64.6 billion, though its free cash flow turned negative due to heavy AI spending. Researchers have also found serious security flaws in widely used AI-related software.

AI Stocks Face Possible 2027 Crash and How to Protect Your Money

Experts warn that AI stocks may form a bubble similar to the dot-com crash of 2000. BloFin Research suggests three strategies to reduce risk. Investors can shift from heavy Nvidia holdings to equal-weight funds like RSP. They can also lock in profits using Treasury yields above 4%. Bitcoin is offered as a possible alternative growth asset for 2027.

Ory Expands AI Agent Security With Build and Deploy Tools

Ory launched new Build and Deploy features for its Agent Security platform. The tools add identity and safety controls during AI agent development. These controls carry into production environments. The system covers four stages: Build, Deploy, Observe and Enforce. Each stage shares a common identity and policy foundation.

Law Firm Urges Companies to Test AI Agents Like Job Candidates

A law firm advises companies to test AI agents carefully before full use. Companies should define tasks, limits and spending rules for each agent. They should track accuracy, safety and completion rates during a trial period. Emergency off switches and human reviews are also important. Every pilot needs a clear end date and decision point.

AI Both Drives and Threatens Global Cybersecurity After Major Attacks

A large AI-driven cyberattack exposed weaknesses across 70% of the internet. Financial institutions and critical infrastructure face growing threats. Cybersecurity firms and AI providers may outperform in the market. Investors are advised to diversify and consider defensive assets like gold. Strong AI and cybersecurity spending could support a bullish market outlook.

Shopify May Be 17% Undervalued After AI Checkout Launch

Shopify shares rose 33% in one month after launching Shop Pay checkout with Meta's Muse AI agent. One valuation model estimates fair value at $210.47 versus a closing price of $174.29. This suggests the stock is about 17% undervalued. However, its P/E ratio of 116.3x is much higher than industry averages. Investors must weigh growth potential against rich pricing.

AI Finds Critical PHP Bug Prompting Global Security Warning

AI discovered a critical flaw in PHP that lets hackers run harmful code on servers. The PHP team released an emergency patch that users should install right away. Experts say this problem is urgent because attackers may strike before systems are updated. The discovery shows how AI can help find and fix security threats.

Naver Cloud Offers Free Security Check Covering AI Risks

Naver Cloud launched a free online tool that helps businesses check their security habits. The tool uses a 21-question survey across seven areas such as network safety and data protection. It includes a special section on security risks tied to AI systems. The goal is to help organizations find weak spots and improve their overall safety.

Sources

• Meta Puts All Its AI Eggs in the Muse Basket
• Meta beats Q3 estimates, approves new nonvoting share class as AI spending surges
• Meta stock drops more than 7% despite strong Q3 results as AI spending fears return
• Meta has big plans for its Muse AI agent
• Mark Zuckerberg Says Meta Will ‘Build Superintelligence Through Scaling’ After $64.6 Billion Q3 Beat, META Stock Jumps After Hours
• Meta boosts bet on AI with spending outlook, new stock class; Q3 results beat estimates
• Meta shares jump 5% as AI investments fuel revenue growth
• FASCSA Orders DeepSeek AI Exclusion & Removal: DHS, DoW & DNI Supply Chain Orders — What Federal Contractors Must Do Now
• Why the US Wants DeepSeek Off Government Systems & Why Deleting the App Is Only the Start
• Investors are still betting on AI, but doubts are piling up
• AI Stocks Could Crash in 2027: 3 Ways to Protect Your Money
• Ory Expands AI Agent Security From Development Through Production With New Build and Deploy Capabilities
• Companies Should Test AI Agents Like Job Candidates, Law Firm Says
• PHP Attacks: AI Giveth Global Cyber Security, AI Taketh Global Cyber Security
• Shopify (SHOP) Could Be 17% Undervalued Following Its AI Checkout Push
• AI Identifies Critical PHP Vulnerability, Sparking Global Security Alert
• Naver Cloud launches free security self-assessment covering AI-related risks