Meta Announces $95 Billion Stock Offering to Accelerate AI Expansion, Backed by Nvidia
80 Sources
[1]
Meta wants to pay for its broad AI buildout with a newly created class of stock
Meta is making a big push into AI, and it's creating a new kind of stock that could help pay for it. On Wednesday, as the company reported its third-quarter earnings, Semafor reported the company might issue non-voting stock, meaning shares that don't give their owners a vote on company decisions,
[2]
Meta to create a new class of shares to fund AI push
Meta says it's issuing a new class of shares to fund its AI initiatives. As part of its third-quarter earnings report released on Wednesday, the company says the non-voting stock will also go toward potential acquisitions and employee compensation, with trading beginning in 2027. "The scale of
[3]
Meta to raise up to $95 billion in equity to fund costly AI expansion
Oct 26 (Reuters) - Meta Platforms (META.O), opens new tab said on Monday it plans to raise up to $95 billion in equity to fund its costly AI-related expansion of data centers, cloud computing power and other infrastructure. The company launched public offerings of about $35 billion in common stock
[4]
Meta plans $95bn stock offering to bankroll AI expansion
Chipmakers Nvidia, AMD and Broadcom will act as cornerstone investors Meta is planning to raise $95bn in a stock offering to fuel its massive AI infrastructure spending, backed by chipmakers Nvidia, AMD and Broadcom, who will act as cornerstone investors. The parent of Instagram and WhatsApp last
[5]
Nvidia to invest $3 billion in Meta as tech giants deepen AI partnership
* Nvidia has said it will invest $3 billion in Meta. * Meta on Monday announced plans to raise a total of $95 billion to support its investments in artificial intelligence infrastructure. In this article * NVDA * META Follow your favorite stocksCREATE FREE ACCOUNT Nvidia has said it will
[6]
Meta gets $3 billion from Nvidia as they team up to make Muse AI faster and cheaper to run
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? One day after Meta announced plans to raise $95 billion to fuel its AI spending, Nvidia has confirmed it will invest $3 billion in Meta's equity offering. Team Green calls the
[7]
Nvidia to invest $3bn in Meta and expand work on Muse agent
Meta will also use more of Nvidia's Vera Rubin chips and networking gear to run its AI agents. Nvidia will put $3bn into Meta and work more closely with it on Muse, Meta's personal AI agent, the two companies announced today. The money is part of the share sale Meta launched on Monday to pay for
[8]
Steep bill for AI buildout punishes Meta, other tech favorites
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[9]
Meta launches $35 billion stock offering to fund AI expansion
Follow your favorite stocksCREATE FREE ACCOUNT Avishek Das | SOPA Images | Lightrocket | Getty Images Meta Platforms on Monday launched public offerings of about $35 billion in common stock and convertible preferred stock, as the Facebook parent seeks to finance its costly AI expansion. The
[10]
Meta plans $95 billion stock offering to fuel AI spending despite growing bubble fears
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? It seems that spending up to $145 billion in a year requires some extra fundraising, even when you're Meta. The Facebook parent plans to raise approximately $95 billion to
[11]
Meta launches $35bn share sale to fund its AI spending
Nvidia, AMD and Broadcom have shown interest in buying up to $5bn of the new shares, Meta said. Meta launched two share offerings worth about $35bn on Monday, as it looks for new ways to pay for its growing spending on AI. The larger offering is $22.5bn of Class A common stock sold through
[12]
Nvidia investing $3 billion in Meta in Muse partnership
Nvidia will invest $3 billion in Meta as part of an expanded partnership that includes closer collaboration on the Muse agent platform, the companies said Tuesday. Why it matters: A multibillion-dollar Nvidia investment is becoming all but table stakes for serious AI players -- a ready source of
[13]
NVIDIA and Meta to Expand Collaboration on Muse and Muse Family of Models Amid Robust Growth
* NVIDIA and Meta will expand their partnership on Muse and the Muse family of models, reflecting popular demand for AI agents. * The companies are also considering other technological collaborations, including NVIDIA OpenShell Reference Architecture to strengthen agency security and NVIDIA Sentry
[14]
Meta plans $95bn stock offering to help cover AI expansion
Tech company announces two-part fundraising after Elon Musk warns hundreds of AI startups face collapse Mark Zuckerberg's Meta has announced plans for a $95bn (£71bn) fundraising to cover its AI expenditure, even as Elon Musk warned that funding for smaller players in the sector was drying
[15]
Meta's credit risk indicator hits record high on increased AI spending plan
Oct 22 (Reuters) - The cost of insuring Meta Platforms' debt against default touched an all-time high on Thursday, as investors grappled with concerns about its plan to spend more on its AI build-out. Meta raised the lower end of its annual forecast for capital expenditure to between $135 billion
[16]
Nvidia to invest $3 billion in Meta's equity offering
The companies will work together on Muse AI model performance as Meta plans to expand its use of Nvidia chips and networking products Nvidia $NVDA will invest $3 billion in Meta $META's equity offering as the two companies expand their partnership on Meta's Muse AI models and agents, the companies
[17]
Meta's advertising engine keeps pace with its AI build-out as legal costs cut into profit
Meta Platforms' third quarter showed that its core advertising business is still growing fast enough to carry one of the largest infrastructure programs in the technology industry. Still, it also showed legal liabilities becoming a material cost line. Revenue rose 26% year on year to US$64.6
[18]
Meta's revenue surges 26% to $64.6 billion, but billions in settlements and skyrocketing AI spending turn screws on profit, free cash flow | Fortune
Mark Zuckerberg's Meta Platforms said Wednesday that third-quarter revenue rose 26% to $64.6 billion, above the $63.3 billion analysts expected, according to Visible Alpha consensus from S&P Global Market Intelligence. Meta reported net income of $9.9 billion, or $3.83 a share, versus $2.7
[19]
Meta Platforms beat the Street. Here's why analysts are bullish on the stock
Meta Platforms ' latest quarterly earnings blew past expectations, helped by its push into artificial intelligence. Now, Wall Street analysts say the stock has much more room to run. The Instagram and WhatsApp parent posted revenue of $64.6 billion in the third quarter versus the $63.37 billion
[20]
Nvidia and AMD invest billions into Meta as companies egg each other on to bet even more on AI
This week both AMD and Nvidia have announced partnerships with Meta, securing both collabs and billions of dollars. All three companies are heavily invested in AI, and these deals are only more fuel for the fire. Nvidia just announced its deal with Meta to "expand their partnership on Muse and the
[21]
Meta shares jump 5% as AI investments fuel revenue growth
Meta Platforms said Wednesday that its third-quarter profit jumped more than threefold, as the social media giant's revenue climbed sharply, adding to confidence that the firm's AI spending is improving the business. Meta shares rose about 5% in after-hours trading on Wednesday, as the tech
[22]
Meta beats expectations but legal penalties hit profit amid AI race
San Francisco (United States) (AFP) - Meta beat investor expectations for third-quarter revenue on Wednesday as it doubles down on a global AI race but the social media giant's profits took a hit due to an $18 billion legal settlement with nearly all US states. The company reported $9.86 billion
[23]
Nvidia, AMD to buy $4B in Meta shares as part of expanded chip partnerships
Meta Platforms Inc. today announced that Nvidia Corp. and Advanced Micro Devices Inc. plan to buy $4 billion worth of its shares. The chipmakers will purchase the equity as part of an up to $95 billion stock sale that the Facebook parent intends to kick off in the near future. The fundraising
[24]
Meta Wants $95 Billion Through Stock Sales to Fund AI Infra
The company is building four superclusters across the US, each with significant computing capacity. Meta Platforms plans to raise up to $95 billion through equity offerings. This includes $35 billion in immediate public offerings of common and convertible preferred stock and a separate programme
[25]
Meta is raising about $35 billion in stock for AI spending
Broadcom joins Nvidia and AMD in signaling interest in up to $5.0 billion of Class A stock; the indications are nonbinding Meta $META Platforms launched underwritten public offerings on Monday totaling about $35 billion to help fund its AI infrastructure spending, the company said. The offerings
[26]
Meta to issue new class of shares as it tightens AI spending forecast
Oct 21 (Reuters) - Meta (META.O), opens new tab on Wednesday raised the lower end of its annual spending forecast and said it would introduce new non-voting shares, in a move that would help fund its costly AI expansion. Shares of the company rose around 4% in extended trading. Meta has been
[27]
Meta put out an ambitious roadmap to Muse monetization after strong quarter and guide
Meta Platforms on Wednesday evening delivered a strong, albeit somewhat noisy, quarter in its first reporting period since the release of its viral Muse AI agent. Investors liked what they saw. Revenue in the third quarter rose 26% year over year to $64.6 billion, more than $1 billion ahead of the
[28]
Meta earnings will provide a gut check for struggling AI trade
Meta Platforms Inc.'s earnings arrive as investors grow anxious about the state of the artificial intelligence trade, offering a chance to calm a few nerves - or exacerbate those fears. "A successful report from Meta would improve confidence in the market, and it could enliven the AI trade by
[29]
Meta and NVIDIA Team Up in Massive $3B AI Expansion
It's 2026, and as AI continues to be one of the most-pushed (and most polarizing) industry technologies within the past few years, we're seeing more and more big names collaborate towards the integration of AI technology in pretty much every field imaginable. Take for example NVIDIA and Meta, which
[30]
Meta Is Making More Money Than Ever. It's Not Enough for Mark Zuckerberg's AI Ambitions
Meta's most recent record earnings weren't enough to alleviate investors' concerns about the future. There are not a lot of companies that make as much money as Meta. In one sense, it's the greatest business model in the world. People create content and post it on their platforms, and other people
[31]
Meta beats on revenue and splits its stock with non-voting shares to raise capital
Meta Platforms Inc. shares rose about 2% in after-hours trading today after the social networking company beat third-quarter revenue expectations and unveiled nonvoting Class C shares that will act as a two-for-one stock split. For the quarter ended on Sept. 30, Meta reported diluted earnings per
[32]
Meta Expects Up To $145 Billion In Capex As AI Investments Expand
The company expects capital expenditure of $135-145 billion in 2026 as it expands AI infrastructure and develops new products. Meta expects capital expenditure of $135-145 billion in 2026 as it continues investing in AI infrastructure and developing new products, according to its third-quarter
[33]
Meta is raising up to $95 billion in equity to fund AI spending
Meta launched about $35 billion of stock offerings and plans a $60 billion at-the-market program not expected to start until 2027 Meta $META Platforms launched concurrent stock offerings on Monday as part of a plan to bring in up to $95 billion of equity financing, the company said. The company
[34]
Meta Says It Plans to Raise Up to $95 Billion to Fund AI Goals
Meta Platforms plans to raise a lot of money in order to fund its AI ambitions. Before the bell Monday, Meta (META) said in a regulatory filing that it intends to raise up to $95 billion in a series of stock offerings. The Facebook and Instagram parent is launching roughly $35 billion of
[35]
Meta earnings live updates: AI spending, ad revenue and stock reaction
Meta is slated to report third-quarter earnings after the bell on Wednesday, and investors will be looking for signs that the company's latest artificial intelligence efforts will bolster future sales. Here's what analysts polled by LSEG are expecting: * Earnings per share: $5.75 * Revenue:
[36]
Nvidia investment: Nvidia, Meta deepen AI ties with $3 billion investment deal
In a groundbreaking partnership, Nvidia and Meta have committed to advancing the Muse AI assistant, with a substantial $3 billion investment from Nvidia to enhance functionality and reduce expenses. This AI assistant is vital to Meta's strategic vision of achieving unprecedented personal
[37]
Meta Doubles Down On NVIDIA Vera Rubin And Vera CPU Racks For Its Muse AI Models, While NVIDIA Puts $3 Billion Into Meta's Equity Offering
NVIDIA and Meta are bringing additional deployments of Vera Rubin and Vera CPUs to power next-gen AI models with increased perf/watt. NVIDIA Vera Rubin & Vera CPU Rackscale Solutions Deployed To Power Meta's Muse Family of AI Models Meta has further expanded its collaboration with NVIDIA on Muse
[38]
NVIDIA Commits $3 Billion to Meta, Expands Muse Partnership - Meta Platforms (NASDAQ:META), NVIDIA (NASDA
NVIDIA Corp. (NASDAQ:NVDA) and Meta Platforms Inc. (NASDAQ:META) announced Tuesday an expanded artificial intelligence partnership focused on Meta's Muse family of AI models. NVIDIA also plans to invest $3 billion in Meta's equity offering. NVIDIA and Meta Expand AI Model Collaboration The
[39]
Meta Q3 2026 earnings beat revenue estimates as Muse tops 10M users
Meta forecast fourth-quarter revenue of $73 billion to $76 billion and narrowed its 2026 capital spending range to $135 billion to $145 billion Meta $META Platforms reported third-quarter revenue of $64.60 billion on Wednesday, up 26% from $51.24 billion a year earlier. That topped analyst
[40]
Meta Platforms: Meta eyes record $95 billion equity raise to fund AI expansion
Meta Platforms said on Monday it plans to raise up to $95 billion in its largest-ever equity fundraising, as the social media giant spends aggressively on its costly AI infrastructure expansion. The Facebook parent has launched public offerings worth about $35 billion in common and preferred
[41]
Meta and Nvidia Team to Enhance the Muse AI Family | PYMNTS.com
The collaboration will focus on improving inference and training performance amid rising demand for "useful" AI agents, Nvidia said in a Monday (Oct. 26) news release. "AI agents represent a new computing paradigm -- software that understands our goals, reasons, uses tools and gets work done on
[42]
Zuckerberg Is Raising the Stakes: Meta Plans $95 Billion Funding Push to Fuel AI Dreams - Meta Platforms
Meta Platforms, Inc. (NASDAQ:META) announced plans Monday to raise approximately $35 billion through stock offerings to support its growing artificial intelligence infrastructure investments. The financing includes $22.5 billion in Class A common stock and $12.5 billion in depositary shares
[43]
Meta stock falls despite Wall Street analysts raising price targets
Meta Platforms (META) shares fell 6.6% midday Thursday, Oct. 22, despite beating Wall Street's third-quarter revenue expectations and receiving a wave of price target increases from analysts. The decline came as investors grew concerned about the social media giant's aggressive spending on
[44]
Analysts Stand by Meta's AI Push Despite $95 Billion Equity Plan Scrutiny | PYMNTS.com
Wells Fargo maintained an Overweight rating and $995 price target on Meta but remained uncertain about the company's spending next year; RBC Capital Markets maintained its Outperform rating and $800 target, while noting that investors are looking for returns from what may be even higher capital
[45]
Meta Platforms: Meta launches $35 billion stock offering to fund AI expansion
Meta Platforms has kicked off public offerings nearly reaching $35 billion as part of its ambitious AI expansion strategy. The tech giant also plans to roll out a significant share sale program, potentially worth up to $60 billion, in the near future. These efforts are aimed at bolstering its
[46]
Mark Zuckerberg just made his boldest AI move yet
Most chief executives wait for proof before betting the company. Mark Zuckerberg went the other way, saying that by the end of 2025 Meta was ready to commit somewhere between $100 billion and $200 billion before it had any real sense of what its new models could do. Then came a twist few people
[47]
Meta's Q3 FCF Turns Negative On AI Spend -- Q4 Capex Implied At $49B-59B - Meta Platforms (NASDAQ:META)
Meta Platforms, Inc. (NASDAQ:META) reported free cash flow that moved from positive $10.625 billion in the third quarter of 2025 to negative $2.120 billion in 2026, a $12.745 billion swing by DFB calculation. Operating cash flow increased over the same period. Cash spending on property, equipment
[48]
NVIDIA Puts USD 3 Billion into Meta to Back Muse AI
NVIDIA will invest USD 3 billion in Meta Platforms. The two companies announced the deal on October 27, 2026. The money will go into Meta's equity offering. The deal also starts a new partnership to build Meta's Muse AI assistant and its wider family of AI models. Few details were shared. The
[49]
Meta launches US$35B stock offering to fund AI expansion
Meta Platforms on Monday launched public offerings of about US$35 billion in common stock and convertible preferred stock, as the Facebook parent seeks to finance its costly AI expansion. The social media company also said it plans to launch a separate at-the-market share sale program of up to $60
[50]
Meta stock surges on strong earnings report; tech giant unveils new shares to bankroll AI spending
Meta shares surged more than 4% in early after-hours trading Wednesday as the Facebook parent reported a 26% jump in quarterly revenue and unveiled plans for a new class of stock that could help finance its massive artificial intelligence spending. Shares of the social media giant jumped 4% to
[51]
Nvidia to invest $3 bln in Meta share offering as part of bigger AI partnership By Investing.com
Investing.com-- Nvidia said on Tuesday it will invest $3 billion in a recent equity offering by Meta Platforms, as part of an expanded partnership focusing on the Instagram owner's Muse line of artificial intelligence models. The two companies said in a joint statement they will collaborate on
[52]
Meta Aims to Raise $95 Billion to Pursue New AI Opportunities | PYMNTS.com
Meta is planning to raise $95 billion to support its artificial intelligence (AI) efforts. The tech giant announced its fundraising plans Monday (Oct. 26), saying it planned to raise $35 billion in underwritten public equity offerings, before drumming up another $60 billion with an at-the-market
[53]
Meta's bigger budget, Tesla's smaller one leave Wall Street uneasy
Investors question how Meta will fund its AI push and whether Tesla's smaller budget can deliver Musk's ambitions. Meta raised its spending forecast and Tesla cut its own, yet shares in both fell on Thursday as investors questioned how the companies would turn their artificial intelligence (AI)
[54]
Meta's AI Spending Raises Investor Concerns Despite Strong Revenue Growth
Meta Platforms' credit risk indicator has climbed to a record high following its latest financial results. Despite strong revenue growth, the company's rising AI infrastructure costs, heavy capital expenditure plans and weaker free cash flow are raising concerns among investors. Meta Platforms is
[55]
Speculation -- and anxiety -- growing that Meta will issue new stock to pay for lavish AI spending
Speculation is growing that Meta will issue new stock to finance a massive buildout of AI infrastructure - even as Wall Street grows increasingly skittish over whether the big bets will pay off, On The Money has learned. Shares for the holding company for Facebook, YouTube and Instagram have been
[56]
Meta's AI Revolution Has Wall Street Excited -- And Worried About The Bill - Meta Platforms (NASDAQ:META)
Meta Platforms Inc. (NASDAQ:META) remains a key artificial intelligence investment story as Wall Street weighs the commercial potential of its Muse AI platform against rising capital costs and the need to sustain growth in its core advertising business. Analysts remain optimistic about Meta's AI
[57]
Meta reverses losses to rise as investors weigh $35 billion AI funding plan By Investing.com
Investing.com -- Meta Platforms shares rose 1% after falling as much as 4% earlier in the session, reversing an initial selloff following the company's launch of roughly $35 billion in equity offerings to help fund its AI infrastructure buildout. Meta also outlined plans for a separate $60 billion
[58]
Meta Platforms: Meta falls as investors balance Muse growth with rising AI costs
Shares of Meta Platforms declined in premarket trading as investors evaluated costs against growth in the AI sector and faced legal hurdles. Despite reporting higher-than-expected quarterly revenue, the company is under pressure from a $25 billion data-privacy ruling. Meta's aggressive investment
[59]
NVIDIA And Meta Expand Collaboration On Muse And Muse Family Of Models
NVIDIA and Meta announced they will partner to expand their work on Muse and the Muse family of models to improve inference and training performance, reflecting popular demand for useful AI agents. Meta?s Muse models and agents, which leverage NVIDIA?s infrastructure, have delivered frontier-level
[60]
Meta, Nvidia Lead Tech Sell-Off as AI Spending Fears Rattle Wall Street, But Gene Munster Sides With Musk
U.S. technology stocks plunged Thursday as concerns over artificial intelligence (AI) spending hammered Meta Platforms Inc. (NASDAQ:META) and Nvidia Corp. (NASDAQ:NVDA). However, Deepwater Asset Management's Gene Munster maintained that the AI revolution remains in its early stages. AI Spending
[61]
Stifel: Meta results signal continued AI infrastructure demand growth By Investing.com
Investing.com -- Stifel analysts said Meta Platforms' third-quarter 2026 results show AI infrastructure demand remains strong, with compute intensity and efficiency improvements acting as key factors in broader platform expansion. Meta reported capital expenditures of $34.9 billion for the
[62]
Nvidia to Invest $3 Billion in Meta's Equity Offering as They Expand AI Partnership
By Megan Cheah and Fabiana Negrin Ochoa Nvidia and Meta Platforms are expanding their partnership on the Facebook parent's artificial-intelligence offering Muse, a move they said reflects demand for "useful" AI agents. As part of the deepened collaboration, Meta intends to increase the deployment
[63]
Meta Q3 Earnings: AI spending, revenue beat and new stock class - Meta beats Q3 estimates as AI spending surges
Meta Q3 Earnings: AI spending, revenue beat & new stock class 1/8 Meta beats Q3 estimates as AI spending surges Meta Platforms reported stronger-than-expected third-quarter revenue, driven by advertising growth, while raising its investment ambitions in artificial intelligence. The results
[64]
Meta Has a New 'North Star' -- Mark Zuckerberg Explains Why He's Betting Big on Personal Superintelligence
On Wednesday, Meta Platforms, Inc. (NASDAQ:META) CEO Mark Zuckerberg outlined the company's long-term AI strategy, highlighting personal superintelligence, proprietary AI models and smart glasses as key bets that could shape its next phase of growth. Zuckerberg Says Personal Superintelligence Is
[65]
Rosenblatt raises Meta stock price target to $900 on AI ad growth By Investing.com
Investing.com - Rosenblatt raised its price target on Meta Platforms Inc. (NASDAQ:META) shares to $900 from $886 on Tuesday while maintaining a Buy rating. The firm cited Meta's third-quarter results, which showed revenue rising 26% year-over-year to $64.6 billion, slightly above estimates and
[66]
Meta plans to raise $95bn to fund its AI ambitions
Meta has announced plans to raise $95bn in the financial markets to accelerate the development of its artificial intelligence infrastructure and superintelligence projects. The move comes as tech giants step up investments in data centers and computing power, despite questions about their long-term
[67]
Meta: Meta beats expectations but legal penalties hit profit amid AI race
Meta beat investor expectations for third-quarter revenue on Wednesday as it doubles down on a global AI race but the social media giant's profits took a hit due to an $18 billion legal settlement with nearly all US states. The company reported $9.86 billion in profits from July to September,
[68]
JPMorgan raises Meta stock price target to $940 on AI momentum By Investing.com
Investing.com - JPMorgan raised its price target on Meta Platforms Inc. (NASDAQ:META) to $940 from $920 while maintaining an Overweight rating. Meta delivered third-quarter results with revenue rising 26% year-over-year, operating income of approximately $23 billion with a 35.4% margin excluding a
[69]
Meta's Mark Zuckerberg Bets 'n Superintelligence 'Through Scaling' - Meta Platforms (NASDAQ:META)
Mark Zuckerberg Says Meta Will 'Build Superintelligence Through Scaling' After $64.6 Billion Q3 Beat, META Stock Jumps After Hours Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg believes the company can reach superintelligence by scaling up its models, with larger ones already in training
[70]
Meta Plans $35 Billion Stock Offering to Power AI Buildout, Eyes $95 Billion Total Plan
Meta Platforms said it will look to raise up to $95 billion to help fund its massive investments in artificial-intelligence infrastructure and personal superintelligence. The Facebook parent said Monday it will launch roughly $35 billion in public offerings, comprising $22.5 billion of Class A
[71]
Earnings call transcript: Meta beats Q3 2026 estimates as AI push lifts shares By Investing.com
Meta Platforms reported stronger-than-expected third-quarter 2026 results, with earnings of $3.83 per share topping Wall Street's estimate of $3.57 and revenue rising to $64.6 billion, above the $63.34 billion forecast. The company said after-hours shares climbed 3.79% to $723.93, adding to a
[72]
Meta raises AI spending forecast to $145 billion, plans new share issue; Q3 revenue beats estimates
Meta raised its 2026 capital expenditure forecast to $135 billion-$145 billion to accelerate AI expansion and announced plans for non-voting shares, while reporting stronger revenue amid mounting legal challenges and intensifying competition. Meta on Wednesday raised the lower end of its annual
[73]
Meta falls as investors balance Muse growth with rising AI costs
Oct 22 (Reuters) - Shares of Meta Platforms fell about 3% in premarket trading on Thursday, as investors weighed the benefits of the company's fast-growing AI agent business against the mounting costs of funding its ambitious AI expansion. The stock has gained more than 5% this year and, if
[74]
Meta's Non-Voting Stock Will Help Finance AI Buildout - Meta Platforms (NASDAQ:META)
Mark Zuckerberg Keeps Control as Meta Adds Class C Stock -- Analyst Sees 'More Capex Coming' for AI Meta Platforms Inc. (NASDAQ:META) will give shareholders a new class of non-voting stock in January, letting CEO Mark Zuckerberg keep control while the company gains a new way to raise money to fund
[75]
Goldman Sachs raises Meta stock price target to $860 on AI momentum By Investing.com
Investing.com - Goldman Sachs reiterated a Buy rating on Meta Platforms Inc. (NASDAQ:META) and maintained a price target of $860.00. The social media giant currently trades at $697 with a market capitalization of $1.79 trillion and a P/E ratio of 26.52. According to InvestingPro analysis, the stock
[76]
Meta delivers strong Q3 results and bets billions on AI
Meta Platforms yesterday posted Q3 revenue of $64.60bn, up 26% y-o-y and above the $63.37bn expected by analysts. Adjusted EPS came to $3.83, but reached $7.40 excluding legal expenses, well above the $5.75 consensus estimate. The strong performance was driven in part by the company's advances in
[77]
Meta's AI Engine Is Firing Up -- Will Earnings Show It's Worth the Billions? - Meta Platforms (NASDAQ:META
Meta Platforms Inc. (NASDAQ:META) heads into third-quarter earnings with investors balancing strong AI-driven advertising momentum and early enthusiasm around Muse against heavy infrastructure spending, enterprise restrictions and questions over when the new AI agent will meaningfully contribute to
[78]
Meta eyes nonvoting shares to help fund AI spending, Semafor reports By Investing.com
Investing.com -- Meta Platforms is considering issuing nonvoting shares to help finance its artificial intelligence ambitions without diluting CEO Mark Zuckerberg's voting control, Semafor reported Wednesday, citing people familiar with the matter. The company could announce the plan as soon as
[79]
Meta Earnings Preview: What Will Mark Zuckerberg Say? - Meta Platforms (NASDAQ:META)
Meta Platforms Inc. (NASDAQ:META) reports third-quarter earnings Wednesday after the bell, with CEO Mark Zuckerberg under pressure to show returns on the company's soaring AI spending. Analysts expect earnings of $5.89 per share on $63.36 billion in revenue, up nearly 24%. The call begins at 4:30
[80]
Meta Earnings Preview: AI Ambitions Face a Reality Check as Capex Doubles
Meta's (NASDAQ:META) heavy investment in artificial intelligence and the uptake of its Muse personal assistant are expected to draw attention when the company reports third-quarter results on Wednesday. Investors will be watching for evidence that its AI spending is helping sustain growth. The
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Meta is raising up to $95 billion through a new stock offering to fund its aggressive AI expansion. The social media giant will issue non-voting shares to maintain founder control while securing capital for data centers and AI infrastructure. Chipmakers Nvidia, AMD, and Broadcom are investing up to $5 billion as cornerstone investors.
Meta Launches Massive Fundraising to Power AI Buildout
Meta has unveiled plans to raise up to $95 billion through a stock offering designed to fund AI push and infrastructure development
3
. The company announced it will initially raise $35 billion through underwritten public equity offerings, followed by an additional $60 billion via an at-the-market share sale program expected to launch in the first quarter of 20273
. This costly AI expansion comes as Mark Zuckerberg's company competes with AI heavyweights like OpenAI and Anthropic in the rapidly evolving artificial intelligence landscape.
Source: Benzinga
New Class of Shares Preserves Founder Control
During Meta's third-quarter earnings call, CFO Susan Li revealed the company's strategy to create a new class of non-voting capital stock distributed to existing shareholders through a stock dividend
1
. The non-voting stock will be used for capital raising, employee compensation, acquisitions, and other corporate purposes while maintaining the voting power of existing Class A and B shareholders1
. Li emphasized this structure preserves Meta's "founder-led structure" while expanding funding tools to invest in the momentum driven by AI across all business segments1
.Chipmakers Join as Strategic Investors in AI Partnership
In a significant show of industry alignment, Nvidia has committed to invest $3 billion in Meta, while AMD and Broadcom have also expressed interest in purchasing shares
5
. Together, these chipmakers are interested in acquiring up to $5 billion of Meta's Class A common stock3
. This AI partnership underscores the symbiotic relationship between Meta's infrastructure needs and the chipmakers' products, as Meta relies heavily on advanced processors for its data centers and AI models development.
Source: Benzinga
Soaring Capital Expenditures Signal Long-Term AI Commitment
Meta has raised its capital expenditures forecast to between $135 billion and $145 billion for this year, up from the previous range of $130 billion to $145 billion
3
. The company has committed to spend approximately $825 billion in the future, primarily for data centers, AI infrastructure development, and cloud computing power3
. This aggressive spending strategy comes despite Meta reporting its first negative free cash flow in over ten years, with a $2.12 billion cash burn in the third quarter compared to positive cash flow of $10.63 billion a year ago3
.Strong Revenue Growth Masks Rising Operational Costs
Meta reported third-quarter revenue of $64 billion, representing a 26% jump from the previous year and beating Wall Street estimates of $63.37 billion
3
1
. However, costs and expenses rose 68% year-over-year, reflecting the scale of investment required to compete in AI1
. Reality Labs, the division responsible for AR glasses and VR headsets, continues losing money, though the company expects losses to shrink to between $18 billion and $19 billion from 2025 levels1
.Related Stories
Muse AI Personal Agents Show Early Traction
Meta's AI products are gaining significant user adoption. Mark Zuckerberg announced that more than 10 million people in the US and Canada have set up Muse personal agents within just a month and a half of launch
1
. The Muse app reached number one in the App Store almost every day following its September rollout and hit 10 million downloads in the US2
. Zuckerberg stated that now that Muse has clear product-market fit, the company is entering a more operational phase focused on scaling to eventually serve billions of people1
.
Source: Benzinga
Expanding AI Model Portfolio Drives Product Innovation
Meta has released several AI models over the past year, including Muse Spark and Muse Glimmer earlier in the year, followed by Muse Wonder and Muse Spark Open, an open-weight model whose parameters are publicly available
1
2
. The company also launched Muse Code, a coding agent for software developers1
. At Meta Connect, the company introduced new avatars for Meta Muse to make AI services more relatable and shareable across social platforms1
.Market Reaction and Future Outlook
Meta's stock tumbled 7% following the earnings announcement and capital raising plans, as investors digested the scale of investment required
4
. The company emphasized that "AI is creating significant opportunities for Meta across its core business and new products and services" and that AI investments are already generating returns through increased engagement, improved advertising performance, and increased monetization4
. However, regulatory challenges loom, with CFO Susan Li noting continued scrutiny on youth-related issues and multiple trials scheduled in coming months1
. Watch for how quickly Meta can translate massive infrastructure spending into tangible revenue growth and whether its AI products can maintain momentum against competitors.References
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