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METAAI investmentBerkshire Hathawayfundraising
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Related tickers and likely impact
META
• NeutralMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/22/2026 | 648.91 |
| Change that session | -6.97% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Meta’s capital-raising plans expose a major weakness in the AI boom
Meta (NASDAQ:META) shares fell 7% on Thursday despite strong earnings, after the company unveiled plans to issue a new class of non-voting Class C stock. In its filing, a special committee cited an increasingly challenging environment for raising capital, pointing to recent and anticipated large raises by Alphabet, SpaceX, Anthropic and OpenAI to fund similar AI growth. Meta said it currently has sufficient capital for its needs but wants more financing flexibility going forward, with the new shares available as early as the end of 2026. The article notes Meta raised its 2026 capital expenditure forecast to $135–145 billion, while third-quarter revenue grew 26% to $64.6 billion and capex reached $34.91 billion, pushing free cash flow negative.
- Meta Creates Non-Voting Stock to Fund AI Buildout, Keeping Zuckerberg in Control
Meta's board approved non-voting Class C stock on 19/10, and from 19/1/2027 Class A and Class B holders will each receive one Class C share per share held, in effect a 2-for-1 split. Zuckerberg holds about 60.6% of the vote on a 13.4% economic interest, and the structure lets Meta sell equity without diluting his voting power. According to the SEC filing, advisers at Moelis told the board Meta could raise about $700 billion over several years before his voting power fell below 50%, while CFO Susan Li called the “hundreds of billions” figure “a theoretical maximum” and said Meta has nothing to announce on equity financing. The size and timing of any equity sale have not been disclosed.
- Meta Just Created a Stock Zuckerberg Can Sell Without Losing Control
On October 21, 2026, Meta's board approved a new publicly listed, non-voting Class C common stock, to be distributed as a one-time dividend of one Class C share for each Class A and Class B share. Mark Zuckerberg holds about 60.6% of the votes but only about 13.4% of the stock, and the structure lets him sell part of his stake without losing control. The class will be created when the amended charter takes effect on January 19, 2027, with trading expected in late January 2027, and Meta says it may use it for capital raising, employee pay and acquisitions, though it has no specific financing plans yet. The announcement comes as free cash flow was negative $2.12 billion and 2026 capex is guided at $135 billion to $145 billion. META rose 0.47% to $697.52 in the regular session and reached $712.61 after hours, up 2.16%, alongside revenue of $64.601 billion.
- SpaceX and Meta face massive capital-raising overhangs
- Meta's new stock sale sends one signal: AI demand isn't slowing down
Brian Sozzi of Yahoo Finance sees Meta's new non-voting share class as a positive signal. CFO Susan Li said the class can be used for capital raising, employee pay and acquisitions while preserving the voting power of existing Class A and B shareholders. Sozzi expects Zuckerberg to remain CEO for at least 15 more years, and says raising capital through stock may be cheaper than borrowing, since debt costs could rise for borrowers such as CoreWeave. He also reads the sale as a sign that AI demand is not slowing, pointing to better ad placement and monetization that helped the quarter's results.
- Warren Buffett's Successor, Greg Abel, Has 32% of Berkshire Hathaway's $364 Billion Portfolio Invested in 3 Unstoppable AI Stocks
Greg Abel took over Berkshire Hathaway after Warren Buffett retired as CEO on Dec. 31, and has reshaped the $364 billion portfolio, dumping 16 stocks in the first quarter. Three AI-focused stocks, Apple, Alphabet, and Bending Spoons, now account for roughly 32% ($115.7 billion) of the portfolio. Apple is the largest position at $78.28 billion, or 21.5% of invested assets, while Alphabet is valued at $36 billion (9.9%) after Abel more than tripled the stake in the first quarter and bought around $17 billion more in the second quarter. Berkshire also agreed to buy 10 million Bending Spoons shares at $33 per share in a private placement, on top of a position worth $1.44 billion (0.4%).
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Latest news
- Meta’s new non-voting shares aim to protect Zuckerberg’s control: Oppenheimer
Oppenheimer said Meta's plan to issue non-voting Class C shares to all shareholders on Jan. 19, 2027 is likely designed to protect CEO Mark Zuckerberg's voting control amid a potential California wealth tax (Prop 40), a one-time 5% levy on residents with net worth above $1 billion that could cost him $10 billion to $15 billion in 2027. The firm maintained its Perform rating and $710 price target, and it expects Meta to raise capital for its AI buildout, though below the hundreds of billions of dollars the company cited. As of Oct. 1, Zuckerberg held 60.6% of voting power and 13.4% of shares outstanding. Analyst Jason Helfstein estimated his voting power would fall to 56.3% if he raised $15 billion personally and Meta raised $150 billion without non-voting stock, a level that is still above 50%.
- Extreme heat causes record losses in Europe
A study by Imperial College London and the London School of Hygiene & Tropical Medicine estimates that heat during summer 2026 was linked to 50,391 deaths across 854 cities in 30 European countries, 71% higher than in 2022 and well above the 28,462 recorded during the 2003 heatwave. About 2/3 of these deaths would not have occurred without human-caused climate change. Western Europe had its hottest summer on record, with average temperatures nearly 3 degrees Celsius above the 1991-2020 average. According to Bloomberg Economics, extreme heat cut about 0.17% from EU GDP between April and September 2026, equal to nearly 17 billion euros and 2.5 times the average loss for the same period over the previous decade. In the second quarter alone, GDP was estimated to be 0.2 percentage points lower in France, 0.1% lower in Germany and 0.05% lower in Spain due to high temperatures.
- Hedge Funds Are Shorting Stocks at Near-Record Levels
Goldman Sachs prime brokerage data shows hedge funds have built short positions in stocks to a near five-year high, while global fundamental long-short funds lost 2.9% through October 15 and suffered losses every trading day in that stretch. On October 22, the S&P 500 fell 1.21% to 7,663.43 and the Nasdaq Composite dropped 2.6%, even though most stocks rose as the selloff stayed concentrated in megacap tech. The Philadelphia Semiconductor Index lost over 6%, Meta fell 6.98% after its third-quarter report, and the 10-year Treasury yield dropped 19.3 basis points to 4.953%. Fundstrat's Tom Lee said the selloff is nearly over, while the article notes that a yield rebound, weak megacap results or a hawkish Fed would prove the shorts right. It also warns that rising prices could force short sellers to buy back shares in a short squeeze.
- Apple Overtakes Nvidia As World's Most Valuable Company — iPhone Duo Hits Stores Amid Strong Demand
Apple (AAPL) hit a record high on Friday, with its market capitalization reaching $5.11 trillion, edging past Nvidia's $5.09 trillion to become the world's most valuable publicly traded company, according to Google Finance. The rally coincided with the launch of the $1,999 iPhone Duo, its first foldable iPhone, where pre-orders exceeded initial supply, estimated delivery dates stretched into late January, and buyers were limited to two devices each. Morgan Stanley's supply-chain checks point to about 6.5 million Duo units in the second half of the year, while IDC expects Apple to capture 44% of global foldable smartphone market value in 2026. iPhone sales made up $54.25 billion of the $109.42 billion in fiscal Q3 revenue, and Q4 results due on November 2 will not include Duo sales. Apple shares are up more than 29% year-to-date.
- Not Nvidia. Not Micron. This Little-Known Chip Stock Is the AI Boom's Best-Kept Secret.
The article argues that Credo Technology Group (CRDO), a connectivity chip designer, receives less attention than its major cloud-provider customers would suggest. Its signature product is an active electrical cable (AEC) that carries 800 gigabits per second over copper, and revenue for the quarter ended Aug. 1 more than doubled from a year earlier. The company is shifting toward optical connectivity after acquiring DustPhotonics in May, with its 1.6-terabit ZeroFlap Active Light Cable slated to ship in 2027 and drawing about 30% less power than a comparable copper AEC. Cited risks include revenue concentrated among a handful of hyperscalers, a stock decline of over 40% from its high earlier this year, and about $2.5 million of stock sold by the CEO in September.
- Apple Duo goes on sale in-store as iPhone 18 demand disappoints
Apple's iPhone Duo is now on sale in stores, priced from $2,000 up to $3,200 for the 2 terabyte version. The hosts said it is sold out, and new online orders show delivery as late as the end of January. Early analyst reports from Asia suggest iPhone 18 demand was below expectations, raising the question of whether Duo sales can offset that. The hosts described the Duo as a consumption device with a weaker camera that lacks optical zoom and heats up, while the iPhone 18 Pro was called a true pro phone with a more robust camera.
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