Meta Plans To Raise Up To $95 Billion In Equity To Power AI

Meta plans a $95bn stock offering to fund AI expansion, including a $35bn underwritten public offering with backers like Nvidia, AMD, and Broadcom, and a $60bn at-the-market offering for new class C shares. Shares rose in premarket trading. Elon Musk warned of funding challenges for smaller AI datacenter providers, causing shares in CoreWeave and Iren to drop.

Wedbush analyst Dan Ives reiterated an Outperform rating and $920 price target for Meta (META) after its announcement of a new share offering to fund AI investments. Meta reported Q3 2026 revenue of $64.6B, up 26% YoY, and raised its capital expenditure guidance. The company's long-term debt increased to $80.9B, but it maintains a moderate debt level and strong cash flows. Multiple analysts have raised price targets and reiterated Buy ratings.

Meta reported Q3 2026 Reality Labs revenue of $443M, down 6% due to lower Quest headset sales, partially offset by AI glasses growth. The company plans to focus on major VR breakthroughs for future products, with Meta VR Glasses launching in Spring 2027 at $1,300. Zuckerberg emphasized AI as a priority but believes in VR's long-term potential.

Meta is raising $35 billion through a stock offering, including $22.5 billion in common stock and $12.5 billion in convertible preferred shares, according to reports. The funds will support increased spending on data centers.

Meta (META) plans to raise up to $95 billion through stock offerings to fund AI investments, including $35 billion in underwritten offerings and $60 billion in an at-the-market program. The company states AI efforts are already driving revenue gains through improved engagement and advertising performance. Meta expects $135-145 billion in capital expenditures this year. Shares slid 1% premarket.

Meta plans to raise $35B in stock offerings, with up to $5B potentially bought by Nvidia, AMD, and Broadcom. The company aims to complete a $60B market sale by 2027. Meta's Q3 revenue grew 26% to $64.6B, but capex exceeded cash flow, leading to negative free cash flow of $2.12B. The company will issue Class A common stock and new mandatory convertible preferred stock, with the latter to be listed on Nasdaq under the ticker METAM.