Overview
- Reuters reported that EU antitrust authorities opened an investigation into Meta over AI features in WhatsApp, with WhatsApp calling the allegations baseless and officials planning to proceed under traditional competition rules.
- Bloomberg and other outlets reported Meta is preparing to trim Reality Labs spending by up to about 30% with possible layoffs, signaling a shift of resources toward AI and wearables.
- Mizuho said cuts on that scale could add roughly $2 per share to its 2026 EPS estimate, while Arete upgraded Meta to Buy at $718 and RBC and Mizuho reiterated bullish targets up to $815.
- Meta reported Q3 records of 3.54 billion daily users and $14.46 ARPU, crediting AI-driven recommendations for higher engagement, including a 5% increase in Facebook time and 10% on Threads.
- Hedge fund disclosures for Q3 showed increased positions in Meta by investors including Stanley Druckenmiller, Israel Englander, Ken Griffin, and Philippe Laffont.