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Gains tied to artificial intelligence companies have contributed an estimated $138 billion to the investment portfolios of 13 public pension funds since 2022, according to reporting on the funds' performance. The rally has helped these funds recover from losses tied to the last financial crisis, even as some politicians grow more critical of the AI industry.
Meta's board approved a new non-voting Class C common stock class, effective January, which the company says will fund capital raising, employee pay and acquisitions tied to its AI push. The New York Times reports an SEC filing shows the plan was also shaped by CEO Mark Zuckerberg's concerns about California's proposed Proposition 40 billionaire tax, which could impose a one-time 5% levy on billionaires' net worth.
Meta Platforms disclosed in its third-quarter earnings report that it plans to split its stock by introducing a new class of non-voting shares. The company said the change is set to take effect in 2027.
Meta confirmed during its third-quarter earnings call that it will create a new class of non-voting capital stock, distributed to all existing shareholders as a stock dividend. CFO Susan Li said the shares are meant to support capital raising, employee compensation, acquisitions and other corporate needs while preserving the voting power of current Class A and B shareholders. The announcement came alongside strong quarterly results, with revenue up 26% year-over-year to $64 billion, though expenses rose 68%.
Meta reported record third-quarter revenue of $64.6 billion and announced plans for a stock split alongside the creation of a new class of shares intended to help finance its artificial intelligence investments. The company said the new share class will not alter Mark Zuckerberg's existing voting control.
Meta announced in its third-quarter earnings report that it will create a new class of non-voting shares, with trading set to begin in 2027. The company said proceeds would support AI infrastructure investment, potential acquisitions, and employee compensation. Meta also raised its 2025 capital expenditure forecast to between $135 billion and $145 billion.
SpaceX's third-quarter earnings exceeded Wall Street expectations, producing an unexpected profit that analysts described as a blowout result. Elon Musk responded by declaring that a previously stated ambitious goal is now within reach, without detailing specific figures or timelines in the reporting.
In a new interview, filmmaker Alex Gibney, director of the documentary 'Musk,' said Musk's abrupt dismantling of USAID led to roughly 500,000 child deaths within a year, citing data tied to a 2025 Lancet study estimating up to 14 million deaths overall by 2030 from the funding freeze. Gibney called the cuts 'a crime against humanity' and rebuked Musk for joking that he 'put USAID into the woodchipper.'
Amazon stock hit an all-time high of $284 on Aug. 3 after a strong earnings report highlighted by CEO Andy Jassy's comments on the long usable life of AWS data center servers and the resulting free cash flow. Since then the shares have fallen more than 7%, even as Morgan Stanley added Amazon to its top picks list and raised its price target from $335 to $350, implying 33% upside from Monday's close.
Salesforce announced it will purchase customer engagement platform Braze, with Class A shareholders receiving $47.50 per share in cash. Braze shares jumped more than 50% on the news after a brief trading halt, while Salesforce stock dipped about 1%. The deal is expected to close in fiscal 2028.
CNBC's Jim Cramer said last week's sharp decline in AI, semiconductor and data center stocks resembles the 1987 Black Monday crash, when automatic selling strategies drove prices down despite healthy underlying companies. The S&P 500 fell nearly 2% and the Nasdaq dropped 4.5% last week, with chip and data center stocks hit hardest even though their fundamentals appeared unchanged.
Shares of Trump Media and Technology Group, parent of Truth Social, dropped more than 7.5 percent on Monday to an all-time low of $6.40, extending a 29 percent slide over the past month. The decline follows reports that the platform's daily user traffic has fallen over 30 percent in the past year, compounding losses the company has posted quarterly.