Meta unveiled a non-voting Class C stock that Class A and B holders will receive at one share per share held once the new charter takes effect January 19, 2027, raising no cash. Entities tied to Mark Zuckerberg and Priscilla Chan, holding 56.1% of the vote, approved the change by written consent, leaving Zuckerberg with about 60.6% of voting power on a 13.4% economic stake. Third-quarter capex of $34.91 billion outran $32.79 billion of operating cash flow, pushing free cash flow to negative $2.12 billion, and the full-year capex guide implies another $49 billion to $59 billion in Q4 alone. Debt has covered the gap so far, with long-term debt up $22.2 billion in nine months to $80.9 billion and no buybacks in 2026. CFO Susan Li said Meta has no specific financing plans yet but wants access to a diverse pool of funding sources, with 2027 capex guidance due on the Q4 call.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Meta’s Free Cash Flow Turned Negative. Its New Share Class Opens Another Funding Option.
Read the original on Yahoo Finance ↗
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METAartificial intelligencecapital expenditureMark Zuckerberg
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META
▼ Likely negativeMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/21/2026 | 698.43 |
| Change that session | +0.60% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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