Meta plans to raise up to $95 billion through a financing program to fund its AI build-out, its first sale of new stock since 2013. About $35 billion is underwritten, including $22.5 billion of Class A common stock under forward sale agreements and about $12.5 billion of mandatory convertible preferred, while a further $60 billion is a planned at-the-market program not expected to start before the first quarter of 2027. NVIDIA, AMD and Broadcom have indicated interest in buying up to $5.0 billion of common shares, but the indications are not binding and match about 22% of the common issue. Meta shares closed down 1.88% at $630.56 while the three chipmakers rose, and critics call the arrangement circular because the suppliers are funding a customer that then orders from them. Meta generated $97 billion of operating cash flow in the first three quarters but expects $135 billion to $145 billion of 2026 capital spending and recorded negative third-quarter free cash flow of $2.12 billion.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
METAshare issuanceAI investmentsemiconductors
Open a keyword to see other news on the same topic.
Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.7T |
| Close on 10/26/2026 | 630.47 |
| Change that session | -1.89% |
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/26/2026 | 215.98 |
| Change that session | +2.38% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Scott Galloway Picks Meta as AI’s “Big Winner” as Its $35 Billion Raise Lifts the Stock
Meta launched about $35 billion of common and mandatory convertible preferred stock to fund its AI build, and shares rose after falling 9% the previous week. Scott Galloway named Meta the likely “big winner” of the AI boom three years from now, citing its moats and capital for the arms race. Revenue reached $201 billion in 2025, and third-quarter revenue rose 26% to $64.6 billion, yet third-quarter capex of $34.9 billion exceeded operating cash flow of $32.8 billion, turning free cash flow negative. Meta also plans an at-the-market program of about $60 billion in new Class C stock starting in the first quarter of 2027, for up to $95 billion of new equity in total. At 20x forward earnings, below its three-year average of 23x, the article says Meta’s 2027 spending plan in late January will be the next test.
- Meta Looks to Raise $95 Billion From Stock Sale to Fund AI Investments
Meta Platforms Inc. is seeking to raise as much as $95 billion by selling common and preferred stock to support its AI development. According to Bloomberg, the offering is tied to a plan announced in earnings last week to create a non-voting share class through a stock split in January, which would attract different types of investors and allow some stock sales without diluting CEO Mark Zuckerberg's stake. The report notes that Google and Intel made rare stock offerings earlier this year, both oversubscribed, with Google's at $85 billion, making Meta's larger. Skepticism around Meta's offering is described as higher than for those deals. The article also says the offering will be watched alongside the Anthropic IPO and other financial raises.
- Meta Stopped Buying Back Stock in 2026. Now It’s Selling Up to $95 Billion of It
Meta (META) began selling about $35 billion of stock on Monday, October 26, to fund its AI build-out, and plans to sell up to $60 billion more of non-voting Class C shares from the first quarter of 2027, bringing the total to $95 billion. Nvidia, AMD and Broadcom indicated interest in buying up to $5 billion of the shares, but that interest is not binding, and the $60 billion program has no agreement yet. Third-quarter spending on property and equipment reached $33.94 billion, up 80% from a year earlier and above the $32.79 billion its operations brought in, leaving free cash flow negative at $2.12 billion. Meta repurchased no stock in the first nine months of 2026, and ended September with about $82 billion of cash against about $84 billion of debt.
- Meta reverses losses to rise as investors weigh $35 billion AI funding plan
Meta Platforms shares rose 1% after falling as much as 4% earlier in the session, reversing an initial selloff following the launch of roughly $35 billion in equity offerings to fund its AI infrastructure. The offerings comprise $22.5 billion in Class A common stock through forward sale agreements and about $12.5 billion in mandatory convertible preferred stock, led by Morgan Stanley and Goldman Sachs. Nvidia, Advanced Micro Devices and Broadcom have expressed non-binding interest in buying up to $5 billion of Class A shares on the same terms as other investors. Meta also plans a separate roughly $60 billion at-the-market offering of Class C nonvoting shares, expected to begin in the first quarter of 2027, and forecasts 2026 capital expenditures of $135 billion to $145 billion. Free cash flow turned negative in the third quarter as capital spending rose, even though Meta generated $97 billion in operating cash flow in the first nine months of 2026.
- Meta announces $95 billion stock offering to fund AI expansion
Meta said on Monday it plans to raise a total of $95 billion to fund investments in AI infrastructure and superintelligence, starting with $35 billion in underwritten public equity offerings and followed by $60 billion through an at-the-market program. The company said the investments will support emerging AI opportunities across its family of apps, its AI agent Muse and its data center business, and the stock rose 1.6% in premarket trading. Last week, Meta's third-quarter revenue rose 26% year on year to $64.60 billion, above the $63.37 billion analysts expected, but investors focused on negative free cash flow. Meta now expects full-year capex of $135–145 billion, raising the bottom of the range from $130 billion, which sent shares lower at the time.
- Meta Is Creating a New Class of Stock. What Shareholders Need to Know
Alongside its third-quarter results, Meta announced a non-voting Class C common stock effective in 2027, which CFO Susan Li said could be used for capital raising, employee compensation and acquisitions while preserving the voting power of Class A and B shareholders, though no specific financing plans were announced. Revenue rose 26.07% to $64.60 billion, beating the $63.39 billion consensus, but GAAP EPS of $3.83 missed the $5.70 expectation due to a $9.89 billion teen mental health settlement charge; excluding it, EPS would have been $7.40. Capex of $34.91 billion pushed free cash flow to -$2.12 billion, which drove shares down 5.02% to $662.49 on the day. The article notes debt of $83.7 billion against cash and marketable securities of $82.4 billion, and cites a 24/7 Wall St. price target of $822.91.
Related markets
Latest news
- The real source of tech market volatility is cash flow, not credit default swaps
Yahoo Finance Executive Editor Brian Sozzi argues that the main driver of volatility in tech stocks is collapsing free cash flow at hyperscalers, not credit default swaps, since that cash will be used to repay the debt they take on to fund AI infrastructure. Citing Evercore ISI's Julian Emanuel, he notes the hyperscaler group of Meta, Amazon, Google, Microsoft, Oracle and SpaceX is expected to have free cash flow near negative $200 billion over the next year. Meta posted negative free cash flow in its third quarter for the first time since 2012, while SpaceX burned about $9.9 billion, and neither company signaled a slowdown in spending. Similar commentary is expected from Google, Amazon and Microsoft when they report this week, which supports Emanuel's view of more quarters of negative free cash flow.
- Nasdaq-100 comes onchain as Janus Henderson and Centrifuge launch first licensed fund
Janus Henderson and Centrifuge launched JQQQ, an issuer-sponsored fund on the Stellar blockchain that tracks the Nasdaq-100 Index, with Janus Henderson issuing and managing the fund, Centrifuge providing the blockchain infrastructure, and Nasdaq licensing the index. Unlike third-party stock tokens, the fund is issued by the manager itself, so investors are not relying on shares held in custody or separate instruments that track prices. Janus Henderson said its onchain investment platform now holds more than $1 billion across Treasuries, structured credit and equities. The launch highlights a growing divide between funds issued onchain by their managers and third-party tokens created without the underlying companies' involvement.
- 3 Reasons to Buy Meta Platforms Stock Before 2027
The article gives three reasons why Meta Platforms (META) may be an opportunity after a pullback: as of Oct. 22, the stock was about 18% below its September high of $779.82. Meta is rolling out Muse, its personal AI agent, which was downloaded by more than 10 million people in its first six weeks, across apps used by 3.6 billion people daily. AI-driven ad upgrades lifted third-quarter revenue 26% to nearly $65 billion, and management expects fourth-quarter revenue of $73 billion to $76 billion. Operating profit fell 37% due to a one-time $9.9 billion legal charge; excluding it, operating income rose 11% to about $22.9 billion. At about $650, the stock trades at a forward P/E of 21.5 on 2026 estimates, while planned 2026 capital expenditures of $135 billion to $145 billion are the main item to watch.
- Ripple strikes deal with Robinhood to expand its RLUSD digital dollar
Ripple has struck a deal with Robinhood to expand use of its RLUSD stablecoin for institutional trade settlement and Robinhood's treasury operations, and to broaden access to digital asset trading and financing through Ripple Prime and Bitstamp, which Robinhood acquired last year. The partnership supports Robinhood's goal of becoming a global financial super-app. Ripple's president says stablecoins have become critical financial infrastructure, while Circle is pursuing a similar model that pairs stablecoins with cross-border payment infrastructure. RLUSD's market cap has grown past $2.5 billion, while the total stablecoin market exceeds $300 billion and is dominated by Tether's USDT and Circle's USDC. Robinhood shares rose about 2.5% in early trading Tuesday.
- Down Nearly 65% From Its 52-Week High, Has Rocket Lab Stock Become a Bargain Buy?
Rocket Lab (RKLB) stock closed just under $54 on Monday, down 64% from its peak of $151 in late May, before the SpaceX IPO reduced investor interest in space stocks. At a $34 billion market cap, it is far smaller than SpaceX, which is valued at about $2 trillion. The company's latest reported revenue was $234 million, up 62% year over year, and trailing 12-month revenue is $769 million. Its Electron rocket can carry payloads up to 300 kg, while the larger Neutron rocket can carry up to 13,000 kg, or 15,000 kg on expendable missions, though its first launch has been delayed until next year. The article notes the business remains unprofitable and its spending is likely to stay high.
- 800 VDC Data Center Power Architecture Market to Reach USD 59.76 Billion by 2034 as AI Racks Outgrow AC Power
According to Polaris Market Research, the global 800 VDC data center power architecture market was valued at $16.24 billion in 2025 and is projected to reach $59.76 billion by 2034, growing at a 15.6% CAGR from 2026 to 2034. As AI rack power density rises, operators are shifting to higher-voltage direct current to reduce conversion steps, copper use and energy losses. Google, Microsoft and NVIDIA, alongside more than 80 Open Compute Project companies, announced plans in 2026 to standardize 800 VDC specifications. Retrofits of existing facilities accounted for 58.36% of deployments in 2025, while native 800 VDC revenue is expected to begin around 2029. North America led with $6.22 billion in 2025, while Asia Pacific is projected to grow fastest at a 16.7% CAGR.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.