Meta launches about $35 billion in stock offerings for AI expansion · Digg

Meta Platforms plans to raise $95 billion through stock sales to fund AI investments, including $35 billion in common/preferred stock and a $60 billion at-the-market program. Suppliers like Nvidia, AMD, and Broadcom may buy up to $5 billion in shares. Meta reported negative free cash flow last quarter. The move reflects a trend of big tech companies raising capital for AI spending.

Meta launched a $35 billion stock offering to fund AI investments, causing shares to rise after a previous decline. Analyst Scott Galloway named Meta a likely 'big winner' in AI due to its capital and competitive advantages. The company's ad revenue reached $201 billion in 2025, but spending has outpaced cash flow, with another $60 billion share program planned for 2027.

Meta Platforms (META) shares dropped 1% after announcing plans to raise $95B to fund AI initiatives, including $35B from public offerings and $60B from at-the-market sales. Nvidia (NVDA), AMD, and Broadcom (AVGO) may buy $5B in shares. Meta's Q3 revenue rose 26% to $64.6B, but rising costs and negative free cash flow concern investors. The company expects $135B-$145B in full-year capital expenditures.

Meta is raising $95bn through a share sale to fund its AI expansion, with Nvidia's backing. The move is among the largest new stock issues and has raised concerns about circular financing in the tech sector.

Meta Platforms (META) plans to raise up to $95B in equity financing, easing funding concerns. Analysts debate AI investment returns, with Wells Fargo (Overweight, $995 target) and RBC (Outperform, $800 target) noting mixed impacts. Yorkville (Outperform, $920 target) highlights growth potential but notes negative free cash flow in Q3 2026.

Meta plans to raise up to $95 billion from selling common and preferred stock to fund AI investments. The company will introduce a new non-voting share class in January. This follows a similar move by Google and Intel earlier this year.