Meta's third-quarter revenue surpassed investor expectations, driven by its aggressive investment in AI. However, the social media giant's profits were significantly impacted by an $18 billion legal settlement with nearly all US states, resulting in a $9.9 billion charge. Additionally, a judge ruled that Meta must pay $25 billion to New Mexico following a jury finding last month that the company deceived users in a case related to the Cambridge Analytica scandal. Despite the legal penalties, Meta shares jumped as high as 7% on Wednesday. The company's CFO Susan Li noted ongoing legal and regulatory matters, including youth-related trials, that could further affect financial results. CEO Mark Zuckerberg expressed optimism about the future profitability of Reality Labs, Meta's hardware division developing AI-powered devices.