Updated 26 October 2026. Meta Platforms (NASDAQ: META) traded at $635.06 in premarket trading at 9:16 am ET on Monday, down 1.18 percent (StockAnalysis), after launching about $35 billion of new stock and mandatory convertible preferred shares before the open. Nvidia, AMD and Broadcom have said they may buy up to $5 billion of the common stock. Meta also plans a separate $60 billion at-the-market programme in its new Class C shares from 2027, about $95 billion of equity in all. The stock closed Friday at $642.62. Verdict: the Barron’s report is now a filed deal, and Monday’s question is dilution against funding certainty. Reference levels: $580 below, $850 above.
Key facts
- Price: META closed at $642.62 on Friday 23 October, down 0.96 percent after Thursday’s 6.98 percent fall, and traded $635.06 (-1.18 percent) premarket at 9:16 am ET on Monday (StockAnalysis). The stock was near $709 before the 21 October results (24/7 Wall St.).
- The offering: about $22.5 billion of Class A common stock sold through forward sale agreements with Morgan Stanley and Goldman Sachs, plus a 30-day option for $3.375 billion more; and 250 million depositary shares, about $12.5 billion, each a 1/20th interest in Series A mandatory convertible preferred stock with a $1,000 liquidation preference, converting on or about 15 August 2029 and to be listed as METAM. Dividend and conversion terms are set at pricing (Meta free writing prospectus, SEC, 26 October).
- The cash comes later: Meta does not expect to receive money from the common stock at first. It can settle the forward sales on dates it chooses, up to 19 November 2027. The preferred proceeds are for general corporate purposes (SEC filing).
- Chipmakers in the book: Nvidia, AMD and Broadcom have non-binding indications to buy up to $5.0 billion of the common stock in aggregate, on the same terms as other investors; they may buy more, less or nothing (SEC filing).
- The $60 billion ATM: Meta plans an at-the-market programme of up to $60 billion of non-voting Class C shares, not expected to start before the first quarter of 2027, after Class C trading begins. No agreement has been signed and timing, size and terms are open (SEC filing).
- Why it needs the money: Meta expects 2026 capital expenditure of $135-145 billion, having raised the bottom of the range from $130 billion with Q3 results. Q3 revenue was $64.6 billion, up 26 percent; diluted EPS of $3.83 included a $9.9 billion legal charge; Q4 revenue guidance is $73-76 billion (Meta 8-K, 21 October; AP via itechguides). Q3 free cash flow was negative $2.12 billion.
- Analysts: 62 analysts rate the stock Strong Buy with an average target of $844.77, a median of $850 and a range of $629.06 to $1,050 (StockAnalysis). Mizuho’s Lloyd Walmsley kept Buy and $950 on Monday; after the results Evercore ISI’s Mark Mahaney moved to $870, Canaccord’s Maria Ripps kept $950, Scotiabank raised to $650 (Hold) and Wedbush to $730 (Hold).
What Monday changed
On Friday FinanceFeeds reported Barron’s account of a possible $40 billion-plus raise and noted that Meta had filed nothing; on the 21 October call CFO Susan Li said the company had no specific financing plans to announce. Two days later the plan is bigger than Barron’s figure and has terms. That removes one uncertainty: investors no longer have to guess how Meta will fund a capex budget that turned free cash flow negative in Q3. It replaces it with a known amount of new stock.
The structure limits the immediate damage. Forward sales let Meta lock in today’s price and take the cash only when it needs it, up to November 2027, so the share count does not jump on settlement day. The mandatory convertible delays most of its dilution to 2029. The Class C programme, set up through the recapitalisation announced with Q3 results, sells shares without voting rights, so Mark Zuckerberg’s control does not change.
How much dilution is $95 billion?
At $635 a share, $22.5 billion is about 35 million Class A shares, roughly 1.4 percent of the 2.56 billion shares outstanding. Meta’s market value was about $1.64 trillion at Friday’s close (StockAnalysis), so the $35 billion launched on Monday equals roughly 2 percent of the company and the full $95 billion, if the ATM is used in full at today’s price, roughly 6 percent. That is spread over three years, and the AI chipmakers buying in are also Meta’s largest suppliers: the money partly comes back to them as GPU and custom-chip orders.
Meta stock scenarios after the offering
| Scenario | META | What has to happen | Anchor |
|---|---|---|---|
| Bear | $580 | The offering prices at a wide discount, the Class C ATM is read as a standing overhang, and 2027 capex guidance in January rises again while credit spreads widen further. | About 9 percent below Monday’s premarket $635.06 and below the lowest analyst target of $629.06. |
| Base | $650-730 | The deal clears with modest pricing pressure; the stock trades the Q4 revenue guide of $73-76 billion against heavier spending. | Scotiabank’s $650 and Wedbush’s $730 Hold targets; the low end is Friday’s close. |
| Bull | $850 | Funding certainty outweighs dilution, Nvidia, AMD and Broadcom take their full $5 billion, and ad growth near Q3’s 26 percent continues into 2027. | The StockAnalysis median target of $850, about 34 percent above premarket. |
What to watch this week
- Monday night: pricing of the common stock and the preferred dividend rate; the discount to Monday’s close is the first test.
- Tuesday: whether the 30-day options of $3.375 billion and 37.5 million depositary shares are exercised, and trading in METAM.
- Wednesday 28 October: the Fed decision and results from Microsoft and Alphabet, the other two hyperscalers spending at Meta’s scale.
- Credit: Meta’s five-year credit default swaps, which reached a record of about 114.5 basis points on 22 October (Reuters, Markit data).
For the longer view, FinanceFeeds’ Meta stock prediction from the $642.62 close sets out year-end paths that predate the offering.
Quick take: Meta has turned the Barron’s rumour into a $35 billion deal today and a $60 billion Class C programme for 2027, with Nvidia, AMD and Broadcom ready to take up to $5 billion. Forward sales and a 2029 convertible spread the dilution out. Clean pricing and steady ad growth open $850; a wide discount and another capex increase open $580.
FAQ
Why is Meta stock moving today?
Before the open on 26 October 2026 Meta launched about $35 billion of Class A common stock and mandatory convertible preferred shares and announced plans for a $60 billion Class C at-the-market programme in 2027 to fund AI infrastructure.
How big is Meta’s stock offering?
About $22.5 billion of Class A common stock through forward sales, with a $3.375 billion option, and about $12.5 billion of depositary shares in mandatory convertible preferred stock (SEC filing). Including the planned $60 billion ATM, about $95 billion.
Are Nvidia and AMD buying Meta stock?
Nvidia, AMD and Broadcom have indicated non-binding interest in buying up to $5.0 billion of the Class A common stock in aggregate, on the same terms as other investors.
When will Meta get the money?
Proceeds from the preferred shares arrive at closing. For the common stock, Meta settles the forward sale agreements on dates it chooses, on or before 19 November 2027. The Class C ATM is not expected to begin before the first quarter of 2027.
What is the Meta stock price target?
The StockAnalysis consensus of 62 analysts is $844.77, with a median of $850 and a range from $629.06 to $1,050. Mizuho reiterated $950 on 26 October.
How much is Meta spending on AI?
Meta expects 2026 capital expenditure of $135-145 billion and has not yet given a 2027 figure.
Sources: Meta Platforms free writing prospectus filed with the SEC, 26 October 2026 (offering terms, forward purchasers, chipmaker indications, Class C ATM); Meta Form 8-K, 21 October 2026 (Q3 results, capex range); AP via itechguides (Q4 revenue guidance, legal charge); StockAnalysis (prices, premarket quote, market value, analyst targets and rating changes, 23-26 October); 24/7 Wall St. (pre-results price); Yahoo Finance/Stocktwits and MarketScreener (premarket coverage, 26 October); Reuters via FinanceFeeds (credit default swaps, 22 October).
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Stock prices are volatile, especially around large share offerings. Do your own research and consult a licensed financial adviser before making investment decisions.
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