In the third quarter of fiscal year 2026, Meta's revenue soared to an all-time high of $64.601 billion, propelled mainly by the robust performance of its advertising sector. Nonetheless, the company faced profit pressures, incurring nearly $10 billion in litigation settlement expenses. Additionally, substantial investments in infrastructure, such as computing power, led to a negative free cash flow for the quarter. To facilitate future expansion, Meta intends to issue non-voting Class C common stock. This move will allow for more flexible financing and talent incentives, while still maintaining Zuckerberg's control over the company.

Meta's newly unveiled AI product, Muse, has rapidly gained traction, with over 10 million users in the U.S. and Canada completing their setups. Shopping has emerged as the most popular application of Muse, with users spending an average of over $200 per transaction. Notably, the transaction volume in the first week of launch surpassed expectations. Given the substantial computing power costs associated with running Muse, Meta has decided to accelerate its commercialization process compared to previous product launches. In addition to the existing paid subscription model, Meta plans to introduce a transaction commission model for merchants.

Looking ahead, Muse will be progressively integrated into smart glasses and the dedicated portable device, Charm. Meta aims to boost Muse's usage frequency by providing multiple hardware access points, thereby driving more subscription revenue. Concurrently, Meta is also pushing forward the development of small-sized, high-efficiency models. The goal is to enhance computational cost efficiency by more than tenfold within the next year, paving the way for Muse to achieve break-even status as soon as possible.