Meta Platforms Secures 2,600 MW of Zero-Carbon Nuclear Power Under 20-Year PPAs
Meta Platforms signed 20-year PPAs with Vistra to buy over 2,600 MW of zero-carbon nuclear power from 2026, including 2,176 MW from Perry and Davis-Besse and 433 MW from upgrades. Vistra will seek license extensions for Perry, Davis-Besse and Beaver Valley reactors to secure long-term energy for Meta’s data centers.
1. Meta Strengthens Teen Content Controls Across Platforms
Meta Platforms has rolled out enhanced age-appropriate content filters for its under-18 users on Instagram and Facebook, blocking posts that would receive a PG-13 movie rating and disabling direct messaging features for younger teens unless they pass an age-verification process. The company reports that more than 60% of its teen user base has engaged with these new controls, which include automated age estimation and optional photo-ID checks. By reducing exposure to mature content by an estimated 45%, Meta aims to preempt regulatory mandates and bolster its family-friendly positioning amid rising government scrutiny globally.
2. Q3 Earnings Exceed Expectations on Robust Ad Demand
In its latest quarterly report, Meta delivered $51.24 billion in revenue, up 26.2% year-over-year, and generated $7.25 in earnings per share, surpassing consensus estimates by $0.51. Advertising impressions rose 14%, while average price per ad climbed 10%, driven by strong performance in key regions including North America and Europe. Operating margins expanded by 3 percentage points to 33%, reflecting efficiency gains in its AI-powered ad placement algorithms. Meta also announced capital expenditures of $18 billion for the quarter, primarily allocated to data-center expansion and AI hardware.
3. First Dividend Declared as Meta Embarks on Shareholder Distributions
For the first time since its IPO, Meta initiated a quarterly dividend in late 2024, paying $0.525 per share to record holders and setting an annualized payout of $2.10. With a payout ratio of under 10%, the board signaled confidence in the company’s cash-generation capacity, noting free cash flow of $16 billion over the past twelve months. Management guided for progressive dividend growth aligned with earnings increases, marking a strategic shift toward returning capital alongside ongoing investments in AI and the metaverse.
4. Institutional Investors Ramp Up and Trim Meta Stakes
Recent SEC filings reveal that hedge funds and asset managers have significantly rebalanced their Meta holdings. Citrine Capital boosted its stake by 242.9% in the third quarter, acquiring nearly 1,700 additional shares to reach a total of 2,397 shares, while Commonwealth Equity trimmed its position by 9.9%, reducing exposure by over 65,000 shares. Overall, institutional ownership remains near 80%, underscoring continued confidence from long-term investors even as some portfolios tactically adjust to sector rotations and valuation shifts.