Meta (META) news

Meta and Microsoft strive to reduce employees’ reliance on Claude: Meta’s internal usage has halved, and Microsoft has cut its budget by one-third.

Microsoft's internal Claude budget has been reduced by more than one-third from its peak, and the number of internal Claude Code users at Meta has dropped from around 60,000 to 30,000. Both companies emphasize that external customer demand is still growing, but the decline in internal usage puts pressure on Anthropic. According to Anthropic's IPO prospectus, two major clients together contributed about 25% of its revenue. Although the prospectus does not name specific clients, it is highly likely that Meta and Microsoft are these two clients or among them.

US Stock Market - Nasdaq Index Closes at All-Time High, Investors Focus on Corporate Earnings

Post-close Latest Developments PTC shares surged due to a takeover bid by Schneider Electric; traders see a decreased probability of an interest rate hike in October; bank earnings season is set to begin next week. Noel Randewich/Tharuniyaa Lakshmi, Reuters, October 5 – On Monday, the Nasdaq closed at a record high, driven by Nvidia and Microsoft, as investors focused on the drop in oil prices and anticipated the upcoming quarterly earnings reports. This marked the second consecutive day of significant gains for the Nasdaq, following weaker-than-expected employment data released on Friday, which weakened market expectations for a Federal Reserve rate hike at its policy meeting this month. Artificial intelligence giants Nvidia (NVDA.O) and Microsoft (MSFT.O) both saw their stock prices rise. Meta Platforms (META.O) and Tesla (TSLA.O) shares also advanced. Oil prices fell due to increased crude exports from the Middle East and a G7 commitment to boost supply. “With economic data releases relatively light and about a week until earnings season starts, investors are searching for any positive catalyst. Clearly, they are looking to the pullback in energy prices,” noted Art Hogan, Chief Market Strategist at B. Riley Wealth. Bank stocks to kick off third-quarter earnings season As major U.S. banks report earnings, the Q3 earnings season will officially begin next week. According to data from the London Stock Exchange Group (LSEG), analysts expect S&P 500 companies’ earnings to rise by over 30% year-on-year, mainly driven by strong performance from AI-related stocks. According to the CME FedWatch tool, following Friday’s data showing U.S. job growth in September slowed more than expected, traders now put the probability of a Federal Reserve rate hike at its October meeting at 24%, down from 70% a week earlier. Following Schneider Electric (SCHN.PA) agreeing to buy software company PTC (PTC.O) in an all-cash deal valued at $22.6 billions, PTC shares jumped on the news. Preliminary data showed the S&P 500 Index (.SPX) rose 51.50 points, or 0.67%, to close at 7,774.22; the Nasdaq Composite (.IXIC) climbed 289.42 points, or 1.06%, to 27,480.28; and the Dow Jones Industrial Average (.DJI) gained 94.59 points, or 0.18%, to finish at 51,274.32. The previous record high close for the Nasdaq occurred on September 22. Despite rising U.S. Treasury yields and higher oil prices due to U.S.-Iran tensions, optimism around strong corporate earnings has driven U.S. stocks to outperform global markets over the past six months. Freight forwarder C.H. Robinson Worldwide (CHRW.O) agreed to acquire transportation broker RXO (RXO.N) for $5.8 billions in a mixed stock and cash transaction. RXO shares rallied on the news, while C.H. Robinson shares fell. Cerebras Systems (CBRS.O) shares gained after OpenAI CEO Sam Altman said on social media that the chip design company is a “close partner” and that the two firms are “working together deeply on pushing the frontier of speed.”

Sector Update: Tech Stocks Mixed Late Afternoon

03:42 PM EDT, 10/05/2026 (MT Newswires) -- Tech stocks were mixed late Monday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 0.7% and the State Street SPDR S&P Semiconductor ETF (XSD) shedding 0.3%. The Philadelphia Semiconductor index rose 0.3%. In corporate news, Schneider Electric said Monday it is acquiring PTC (PTC) in an all-cash deal valued at $23.7 billion. Schneider said it will pay $205 per PTC share. PTC shares surged nearly 34%. Meta Platforms (META) and Microsoft (MSFT) are reducing employees' use of Anthropic's Claude as they push their own AI tools, The Information reported. Meta shares were up 2.1%, and Microsoft rose 2.2%. Strategy (MSTR) recorded an estimated $20.91 billion gain on digital assets in Q3, the company said in a Monday filing. Its shares rose 3.2%. SpaceX (SPCX) shares are "cheap and getting cheaper," Morgan Stanley analyst Adam Jonas said in a note. The shares have hovered around $150 per share since early August, and at $159, investors can take advantage of an opportunity to buy shares that, "while expensive on any trailing metric, look unusually cheap on the forward," Jonas said. Morgan Stanley maintained its overweight rating and $300 price target on the company. SpaceX shares jumped past 6%. Nvidia's (NVDA) $20 billion licensing deal with Groq is the subject of a lawsuit alleging that Groq's board improperly sold the AI firm's core assets and top engineers, the Financial Times reported. The lawsuit, filed on Friday by Groq engineers and shareholders Benjamin Serebrin and Joshua Rubin, accuses the firm's board of not seeking to get the best price and structure for all shareholders, and not allowing some of them to vote on the deal, the report said. Nvidia shares were up 2.5%.

This year, only tech billionaires are making money: the AI boom drives a $845 billion surge in net worth, with Elon Musk alone accounting for nearly 40%.

According to the Bloomberg Billionaires Index, out of the world's 500 richest people, approximately 100 technology industry billionaires saw their combined wealth increase by $845 billion in the first nine months of this year, setting a historical record for the period. Meanwhile, billionaires from non-technology sectors saw their collective wealth shrink by $62 billion during the same timeframe. Elon Musk alone added $310 billion to his wealth in the first nine months, accounting for about 40% of the total increase in the index.

Sector Update: Tech

03:17 PM EDT, 10/05/2026 (MT Newswires) -- Tech stocks were mixed late Monday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 0.7% and the State Street SPDR S&P Semiconductor ETF (XSD) shedding 0.3%. The Philadelphia Semiconductor index rose 0.3%. In corporate news, Meta Platforms (META) and Microsoft (MSFT) are reducing employees' use of Anthropic's Claude as they push their own AI tools, The Information reported. Meta shares were up 2%, and Microsoft rose 2.1%.

Market Chatter: Meta, TikTok Push Back Against Information Requests by British Regulator

03:14 PM EDT, 10/05/2026 (MT Newswires) -- Meta Platforms (META), TikTok and X are pushing back on the amount of information sought by British regulator Ofcom linked to online safety, Reuters reported Monday, citing court filings. The companies said the information request is burdensome and lacks a clearly defined regulatory purpose, the report said. "This challenge is on a narrow issue regarding Ofcom's implementation of a substantial extra-statutory program not mandated by law, when the Online Safety Act already provides for a significant transparency regime," a TikTok spokesperson said in an email to MT Newswires. Meta and X did not immediately respond to requests for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.) Price: 742.89, Change: +14.81, Percent Change: +2.03

Market Chatter: Meta, Microsoft Cut Internal Use of Anthropic's Claude

02:59 PM EDT, 10/05/2026 (MT Newswires) -- Meta Platforms (META) and Microsoft (MSFT) are reducing employees' use of Anthropic's Claude as they push their own artificial intelligence tools, The Information reported Monday, citing people familiar with the matter. Microsoft has cut its projected internal spending on Anthropic's technology by more than a third, while Meta's Claude Code users have fallen to about 30,000 from roughly 60,000 earlier this year, the report said, citing unnamed sources. Microsoft has urged employees to prioritize non-Anthropic models through GitHub Copilot, while Meta has promoted its own coding tools, including Muse Code and MetaCode, according to the report. Meta, Microsoft and Anthropic did not immediately respond to MT Newswires' request for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.) Price: 742.66, Change: +14.58, Percent Change: +2.00

Meta and Microsoft strive to reduce employee reliance on Anthropic Claude

According to The Information: Meta Platforms (META.US) and Microsoft (MSFT.US) are working to reduce their employees' reliance on Anthropic Claude.

Plaintiffs’ lawyers in AT&T class actions win $59 million legal fee award

By Mike Scarcella WASHINGTON, Oct 5 (Reuters) - A federal judge has approved $59 million in legal fees for lawyers who negotiated $177 million in class action settlements with AT&T T.N over data breaches in 2024 that exposed the personal information of tens of millions of customers. Here are the details: US District Judge Sidney Fitzwater in Dallas said the settlements were fair and approved them on Friday over objections to the scope of AT&T's payments and the lawyers' fees One group of lawyers, including Houston-based Mark Lanier, were awarded $49.7 million, and a second group will receive $9.3 million Eligible customers can receive up to $2,500 or $5,000 from the settlements The deals faced dozens of objections, including that AT&T's agreement paled in comparison to a $350 million settlement in related data-breach litigation against T-Mobile Some objectors also claimed that AT&T negotiated with the least effective attorneys in order to secure a weak settlement in a so-called reverse auction. The plaintiffs' lawyers have defended the settlement and denied the claim Law firms BakerHostetler and Skadden Arps represented AT&T, which denied any wrongdoing in agreeing to settle. The company did not immediately respond to a request for comment Read more: Rival lawyers clash over fees after $2.8 billion Blue Cross settlement Judge in Google privacy class action awards lawyers $147 million in legal fees Law firm Motley Rice's fee for Meta case in New Mexico could top $67 million (Reporting by Mike Scarcella)

Lumentum: Capacity Crisis, What Other Core Skills Does the All-Purpose "Water Seller" Have?

Morgan Stanley: US Data Center Power Shortfall Reaches 34%; Leading Chip Manufacturers Temporarily Immune, Mid- and Downstream Sectors Under Pressure

However, the report emphasizes that Nvidia and Broadcom, thanks to their global presence, higher unit power computing output, and clear upstream and downstream visibility, are temporarily unaffected by power constraints in their 2027 performance guidance. In contrast, downstream segments such as ASIC, storage, optical modules, and analog devices will face greater demand fluctuation risks.

Banks retreat, bond discounts, and it's hard to borrow money for the AI construction boom

Discounted sales of high-yield bonds have become the new norm—among this year's $55 billion related bonds, the most recent four issuances were all at a discount; major banks such as Société Générale and Mitsubishi are adopting a more cautious approach; Oracle's force majeure event has further prompted lenders to tighten their terms. With $700 billion in capital expenditures from mega-tech companies competing for financing, combined with rising Treasury yields, the cost of funding for some projects is approaching the break-even point. Developers with lower ratings and less experience are being hit first.

Trading congestion! Bank of America warns: "Buy AI, sell consumer" strategies are increasingly difficult to generate excess returns

Active fund holdings have already fully reflected the theme of "consumption shifting to capital expenditure." It is becoming increasingly difficult to generate excess returns by buying beneficiaries of AI capital expenditure and selling white-collar consumption themes.

Social Buzz: Wallstreetbets Stocks Mixed Pre-Bell Monday; Vistra, Nike to Open Higher

06:36 AM EDT, 10/05/2026 (MT Newswires) -- The most-talked-about stocks in the Reddit subforum Wallstreetbets were mixed hours before Monday's opening bell. Vistra (VST) rose by 5.9% in pre-bell activity, after a 0.2% increase at Friday's close. Vistra may receive a $4 billion loan package from the Trump administration to upgrade three of its nuclear plants, Bloomberg reported, citing people familiar with the matter. Nike (NKE) was up 1.5% in premarket hours, swinging from a 3.6% fall at Friday's close. Alpha Tau Medical (DRTS) advanced by 1.2% premarket, after closing Friday with a 1.8% increase. SpaceX (SPCX) rose by 0.4% pre-bell, after a 7.4% increase from the previous session. Nvidia (NVDA) was 0.5% higher hours before the market open, following a 1.3% rise from Friday's session. Meta Platforms (META) was 0.4% lower in premarket activity, swinging from a 0.3% increase at Friday's close. Micron Technology (MU) was down 0.3% pre-bell, after a 2.1% fall from the previous session. Microsoft (MSFT) was marginally declining premarket, swinging from a 0.9% increase at Friday's close.

Dow Jones Top Company Headlines at 5 AM ET: Schneider Electric to Buy Software Maker PTC for $22.6 Billion | Shionogi ...

Schneider Electric to Buy Software Maker PTC for $22.6 Billion The acquisition aims to create one of the largest industrial-software at a time when the rise of AI is reshaping customer needs. ---- Shionogi to Acquire IntraBio for $2 Billion The Japanese drugmaker said IntraBio's expertise would strengthen capabilities across its rare disease pipeline. ---- Robotics Startup RobCo Hits $1 Billion Valuation The German company aims to capitalize on growing demand for autonomous industrial robots. ---- These Energy Companies Put Oklahoma City on the Map. Now They're Moving to Texas. The departures of Devon Energy and Expand Energy are the latest sign that oil-and-gas mergers are consolidating the industry in Houston. ---- Akzo Nobel to Sell Southeast Asia Decorative Paints Business for $1.35 Billion Akzo Nobel said the planned sale would mark the conclusion of its decorative paints portfolio review in Asia and it would continue to focus on closing of its planned merger with Axalta Coating Systems. ---- The Carmaker Vying With Tesla to Conquer the Robot Future Hyundai is planning scores of new human-driven cars while Tesla is turning away from the steering wheel. ---- Spending on AI Is Becoming Almost Impossible for Businesses to Budget AI use is measured in tokens, but the models' use of tokens at any given task can be unpredictable. ---- Amazon's Crime Thriller 'Verity' Tops the Weekend Box Office The Anne Hathaway film overpowered Tom Cruise's latest. ---- The '90s Are Back in Style. Levi's Is Cashing In. The 173-year-old denim maker is enjoying a comeback as shoppers rediscover jeans with low rises and loose fits. ---- The Layoff Announcements Keep Coming, but No One Knows Who, Where or When From Nike to Meta, companies are telegraphing broad cuts in advance, leaving workers in limbo on the details. ---- Luxury Stocks Are Selling at Fast-Fashion Prices Trends that made luxury companies like LVMH such a brilliant investment over the past 20 years are fading. ---- The Brothers Dominating the $211 Billion Car Repair M

Michael Saylor Proves Bitcoin Is Tame With a Chart Where His Own Stock Hits 94%

Dow Jones Top Company Headlines at 3 AM ET: Schneider Electric to Buy Software Maker PTC for $22.6 Billion | These ...

Schneider Electric to Buy Software Maker PTC for $22.6 Billion The company said the acquisition aims to create one of the largest industrial-software portfolios. ---- These Energy Companies Put Oklahoma City on the Map. Now They're Moving to Texas. The departures of Devon Energy and Expand Energy are the latest sign that oil-and-gas mergers are consolidating the industry in Houston. ---- Akzo Nobel to Sell Southeast Asia Decorative Paints Business for $1.35 Billion Akzo Nobel said the planned sale would mark the conclusion of its decorative paints portfolio review in Asia and it would continue to focus on closing of its planned merger with Axalta Coating Systems. ---- The Carmaker Vying With Tesla to Conquer the Robot Future Hyundai is planning scores of new human-driven cars while Tesla is turning away from the steering wheel. ---- Spending on AI Is Becoming Almost Impossible for Businesses to Budget AI use is measured in tokens, but the models' use of tokens at any given task can be unpredictable. ---- Amazon's Crime Thriller 'Verity' Tops the Weekend Box Office The Anne Hathaway film overpowered Tom Cruise's latest. ---- The '90s Are Back in Style. Levi's Is Cashing In. The 173-year-old denim maker is enjoying a comeback as shoppers rediscover jeans with low rises and loose fits. ---- The Layoff Announcements Keep Coming, but No One Knows Who, Where or When From Nike to Meta, companies are telegraphing broad cuts in advance, leaving workers in limbo on the details. ---- Luxury Stocks Are Selling at Fast-Fashion Prices Trends that made luxury companies like LVMH such a brilliant investment over the past 20 years are fading. ---- The Brothers Dominating the $211 Billion Car Repair Market Mavis, Midas and Pep Boys are on a tear across the country as the average car is a historic 13 years old and more complex than ever ---- FAA Says 737 MAX Software Glitch Doesn't Pose Safety Issue The problem had raised safety concerns in the airline industry, panel of regulators reviewed. ---- Delta Is the Only Big Four Airline

After including the $628 billion off-balance-sheet commitments in valuation, is Meta stock "35% more expensive"?

Meta Muse goes viral but faces retention bottleneck: open rate below mainstream apps, long-term monetization faces challenges

Since its launch, Meta's AI agent Muse has accumulated over 5.6 million downloads and once topped the Apple App Store rankings. However, its open rate remains lower than mainstream applications such as Google and ChatGPT, with retention and usage frequency yet to catch up. Based on this, BNP Paribas has downgraded its long-term monetization expectations for Muse, believing that in the short term, it will be difficult to challenge vertical platforms in sectors such as e-commerce and tourism. Future commercialization will still depend on improvements in user engagement and the validation of advertising and other models.

Bank of America: "AI trading" is the "last line of defense" in the current US Treasury market

Bank of America warns that the AI narrative is currently acting as a “buffer” against macro risks, suppressing market volatility. The FOMO sentiment driven by AI has created an “AI put option” effect, making the stock market almost indifferent to sharp fluctuations in the bond market. Bank of America is concerned that if the AI narrative falters, downward revisions in growth expectations could turn a bond market crisis into a broad market crisis, with all suppressed macro risks amplifying simultaneously.

Besent “Extinguishes Fire”: Rising US Treasury yields are a global phenomenon, dismisses concerns over AI bubble

U.S. Treasury Secretary Janet Yellen defended the rise in U.S. Treasury yields, stating that this increase is a global phenomenon rather than unique to the United States, and does not warrant excessive concern. She partially attributed inflationary pressures to higher oil prices caused by the Iran conflict, and expects the energy shock to subside as hostilities ease. Yellen refuted the notion of an AI bubble, arguing that investments by major tech companies are grounded in solid business logic.

Besant says there is no need to panic over the rising US Treasury yields

U.S. Treasury yields remain high! Elevated borrowing costs continue to impact the U.S. economy, AI investment boom intensifies the divergence from the real economy

As the yield on 10-year U.S. Treasury bonds remains above 5%, investors are turning their attention to a potentially more important issue than short-term market fluctuations: what impact will persistently high U.S. borrowing costs have on the economy and financial markets?

Sources say Nscale has appointed a senior Meta executive as COO to prepare for its IPO.

Meta lays off Virtue AI employees hired in June

Meta and Virtue AI go their separate ways

Muse user growth remains strong but long-term monetization prospects are still in doubt; BNP Paribas maintains Meta (META.US) with an "Outperform" rating.

Meta's AI agent Muse has accumulated over 5.6 million downloads within a month of its launch, surpassing the initial performance of ChatGPT and Sora. However, BNP Paribas points out that user habits are not yet established, and the long-term commercial prospects remain uncertain.

Nvidia hits new intraday high, buyback plan increases to 150 billion dollars boosting stock price

Nvidia Stock Heads for Record High as It Hits Back at Critics -- Barrons.com

23 days after launch, consumer-grade Agent explodes! Morgan Stanley's in-depth analysis of "6 key issues about Muse"

Morgan Stanley believes that in the short term, Muse should focus on user growth, while in the long term, it is expected to achieve commercialization through consumer transactions, enterprise services, and APIs. The high computational cost is both a pressure and may become a competitive barrier; Meta's existing CPU reserves are sufficient to support further expansion. Meanwhile, the collaboration with Amazon will affect the Agent e-commerce entry point, and the enterprise market provides new revenue opportunities. The current valuation has already reflected some expectations, and the key going forward remains in the realization of commercialization.