October 21, 2026: Meta AI Goals, Tesla Cuts Annual Capex Target, More

0:01 News when you want it. With Bloomberg News Now, I'm Doug Krisner. There were major earnings reported after the bell. Meta Platforms posted revenue for the third quarter above the average estimate. The company also boosted its outlook for capital spending. And Meta said it will create a new class of non-voting stock to raise capital to fund its push into AI. Now, this new stock will not affect CEO Mark Zuckerberg's voting control over the company. We got reaction from Libby Leffler.

0:29 operating advisor at Bessemer.

0:31 I think they are taking really big swings here, you know, setting and placing some record bets on the infrastructure side. They have never done this, but Mark is moving quickly. Big ambition around this.

0:43 That is Libby Leffler of Bessemer. At the same time, Zuckerberg said that he is considering leaving California if that state were to pass a measure to impose a one-time 5% tax on billionaires. Even so, Meta now has an agreement with Zuckerberg to keep him living in the same jurisdiction as the company's headquarters. Tesla reported third-quarter profit above estimates, even though revenue narrowly missed forecast. And Tesla's cash flow was positive. The market had expected cash burn of nearly $ 5 billion. Now, these results give Tesla a bit of breathing room as it pursues self-driving cars and humanoid robots.

1:22 Later in the day, on the earnings call with analysts, Tesla announced its 2026 CapEx target down to $ 20 billion. The earlier target was at least $ 25 billion. Here is Bloomberg's Annabelle Droolers.

1:35 The company's sort of been consistently short of that pace that's needed to hit that spending goal. They had around $ 4. 7 billion outlay in the third quarter. Analysts actually had been expecting nearly $ 8 billion. So you're really far short on that front. And also a very narrow product lineup. Of course, Elon Musk is someone who makes that big bet on the Optimus robots, for instance. But still, it's the vehicles that are the bread and butter. And we have seen a lot of struggles around that.

2:01 That is Bloomberg's Annabelle Droolers. IBM reported sales above analyst estimates. The company posted 5% growth. Here is Bloomberg's Anurag Rana.

2:12 I mean, the numbers are very strong because you look at it, well, strong compared to the expectations because software rebounded very well. You saw total growth rate improve and you saw hybrid cloud still good. So I think barring a little bit slowdown, I would say, in consulting compared to expectations, everything was pretty good at this time.

2:32 That is Bloomberg analyst Anurag Rana. Now, IBM's infrastructure unit recorded... 4% revenue expansion. The company said it recovered most of the infrastructure deals that were delayed earlier this year. The stock market closed higher despite worries over renewed hostilities in the Middle East. The State Department ordered departures for non-emergency staff in Saudi Arabia because of the growing threat from Houthi militants in neighboring Yemen. AI-related shares benefited from strong results at both SpaceX and Supermicro. The Philadelphia Semiconductor Index was up 2%. We had the Dow Industrial Average rising 7 tenths of 1%. The S & P up 6 tenths of 1%. The Nasdaq Composite jumped 1% today. Russian President

3:17 Vladimir Putin said Moscow is ready to resume trilateral negotiations with the U.S. and Ukraine on a potential peace deal. The Kremlin said Putin made the offer during talks with President Trump's envoy, Steve Witkoff. And Russia is prepared to have those three-way talks in early November. CBS News reported the trilateral talks would happen at a technical level. Bloomberg's national security editor is Ian Marlowe.

3:43 One thing to stress is also that no one really feels like anything has changed in terms of the dynamics. Everyone knows sort of what Russia wants, what Ukraine wants, where the red lines are. The issue is the political will to get there. And I don't think anyone is saying that political will has changed, either in Putin's eyes or in Zelensky's eyes in terms of compromise.

4:08 That is Bloomberg's Ian Marlow. Meantime, Ukrainian President Volodymyr Zelensky told Fox News that it's acceptable for Kiev to freeze the battlefield to move to peace talks. Zelensky also said his troops are still struggling with access to Starlink satellite internet service. And he said, Secretary of State Marco Rubio pledged to work with his team to restore that service, which is essential for Ukraine's defense. Pope Leo will not require additional treatment after undergoing surgery for lung cancer last week.

4:41 The Vatican said tests confirmed the cancer was at an early stage. Last week, the Pope underwent surgery to remove the lower lobe of his right lung after doctors discovered a nodule. And that is news when you want it. With Bloomberg News Now, I'm Doug Krisner and this is Bloomberg News.