Meta Prices $25 Billion Stock Sale at $625 a Share in Record $97.5 Billion Raise
Meta Platforms raised the planned size of its equity offerings to $97.5 billion on Tuesday, Oct. 27, 2026, the largest in its history, Reuters reported. Nvidia and AMD announced investments of $3 billion and $1 billion, respectively, in the offering.
Meta had targeted $95 billion at the start of the week. The Motley Fool reported that investment banks saw the Class A offering oversubscribed fivefold, which led to the $2.5 billion increase.
Meta shares closed Tuesday at $620.19, down 1.64%, on volume of 50.4 million shares, about 148% above the three-month average of 20.3 million.
How the $97.5 Billion Is Split
Meta will sell $25 billion of Class A common stock at $625 per share, up from the $22.5 billion it disclosed on Monday. It also priced 250 million convertible preferred depositary shares at $50 each, a $12.5 billion offering.
The remaining $60 billion is an at-the-market program, in which a company sells shares gradually at prevailing prices. Meta has not finalized its timing or terms.
Reuters reported that sales are expected to begin after new non-voting Class C shares start trading in the first quarter of 2027.
Reuters said Nvidia, AMD and Broadcom had expressed interest in buying up to $5 billion of Class A stock combined. The Motley Fool put the Nvidia and AMD commitments at $4 billion in total.
Cash Burn Behind the Raise
Meta's third-quarter free cash flow, the cash left after operating costs and capital spending, was negative $2.12 billion, The Globe and Mail reported. That was the first negative reading in more than a decade, against positive $10.63 billion a year earlier.
As of Sept. 30, Meta held $82.45 billion in cash and marketable securities and $80.92 billion in long-term debt, according to its quarterly filing.
Meta has committed to about $825 billion in future spending, mainly on data centers, AI infrastructure and cloud computing capacity, Reuters reported.
The Motley Fool said the company projects capital spending of $135 billion to $145 billion in 2026, compared with $72.2 billion in 2025.
Meta posted third-quarter revenue of $64.6 billion, up 26%, with guidance above expectations.
"We expect investors to continue to question the financing and potential for future capital raises," William Blair analysts said in a note, according to Reuters.
The same analysts said they believe Meta will ultimately produce a profitable AI business, though the path may not be linear.
Class C Shares and the Zuckerberg Tax Deal
Meta said it will issue Class C common stock in January 2027, which works out to a two-for-one split. The shares are meant to fund acquisitions and retain top talent while preserving the control of Mark Zuckerberg, Meta's chief executive.
Meta also agreed to grant Zuckerberg Class C shares he can sell toward a potential California billionaire wealth tax, in exchange for his commitment to stay in California.
Alphabet raised its equity offerings to $84.75 billion in June, Reuters noted, as large tech companies lean more on debt and equity markets than on internal cash.
Market Backdrop
Meta shares closed down nearly 2% on Monday at $630.56. The Motley Fool's Oct. 26 market wrap said the stock fell 2% after the filing disclosed plans to raise up to $95 billion, even as tech stocks rallied on Anthropic's IPO filing Anthropic's IPO filing.
On Tuesday the S&P 500 closed up 0.60% at 7,723 and the Nasdaq Composite rose 1.18% to 26,478.