Meta just launched a Meta $95 billion equity plan to pay for the AI race. On Monday, October 26, 2026, the Facebook parent launched $35 billion in stock offerings — and laid out a plan for up to $60 billion more.
It is one of the largest equity raises a tech giant has ever attempted — and a sign that even the richest companies cannot fund the AI buildout from cash flow alone.
What Meta actually announced
Meta announced two offerings on Monday, plus a planned third program. Details from Meta’s official offering announcement:
- $22.5 billion of Class A common stock, sold through forward sale agreements with Morgan Stanley and Goldman Sachs.
- 250 million depositary shares, about $12.5 billion, each representing a 1/20th interest in Series A mandatory convertible preferred stock.
- An at-the-market program of up to $60 billion in new non-voting Class C shares, expected to start in the first quarter of 2027.
The $35 billion is launched. The $60 billion is not — Meta says it has signed no agreement for that program yet, and there is no assurance it will happen. Headlines saying “$95 billion raised” overstate it. The honest total is $35 billion launched, up to $95 billion planned.
How the $35 billion is structured
The two launched pieces work very differently, and the difference matters for anyone reading the headlines.
| Piece | Size | Key term |
|---|---|---|
| Class A common stock | $22.5 billion | Forward sales; cash at settlement by Nov 19, 2027 |
| Mandatory convertible preferred | $12.5 billion | 250M depositary shares; converts around Aug 15, 2029 |
| Class C at-the-market program | Up to $60 billion | Planned; no agreement yet; expected Q1 2027 |
| Underwriter options | Up to $3.375B + 37.5M shares | 30-day greenshoe options |
On the common stock, Meta gets no cash upfront. Under forward sale agreements, it receives proceeds when the forwards settle, on dates it picks on or before November 19, 2027.
On the preferred side, Meta proposes listing the depositary shares on Nasdaq as METAM. They convert into common stock around August 15, 2029. Dividend and conversion terms get set at pricing — reports point to a yield near 6% to 6.5%, but those are reports, not priced terms.
Evidence in one line: the chipmakers funding Meta’s AI buildout may also buy its stock — Nvidia, AMD, and Broadcom indicated non-binding interest in up to $5 billion of the Class A shares combined.
Source: Meta’s official offering announcement, October 26, 2026.
Why Meta needs the money now
Meta’s AI spending has outgrown its cash flow. The company expects 2026 capital expenditure of $135 billion to $145 billion, after raising the low end from $130 billion last week.
- Cash burn: Meta reported a $2.12 billion cash burn in Q3 — its first negative free cash flow in over ten years, versus positive $10.63 billion a year ago.
- Balance sheet: cash, equivalents, and securities of $82.45 billion at September 30, against long-term debt of $80.92 billion.
- Future commitments: about $825 billion, mostly data centers, AI infrastructure, and computing power.
- Trading results: Q3 revenue of $64.60 billion beat estimates of $63.37 billion, with Q4 guided at $73 billion to $76 billion.
Meta’s case is that spending already pays: AI investments are “already generating tangible returns” via engagement, advertising, and monetization — and it is pursuing superintelligence, agents, enterprise products, and AI glasses.
The market reaction — and the Alphabet echo
Meta shares fell about 5% in premarket trading, then rallied to trade up around 1.5%. Early trading put the stock near $635, down about 1.1%, after a roughly 7% drop the prior week when Meta first signaled the Class C share creation.
Wall Street had expected a big deal but not this soon. The structure echoes Alphabet’s $85 billion financing in June — a reminder that the entire AI frontier is now funded partly through equity markets, not just profits.
How to profit from Meta’s AI spending
This is not investment advice, and nothing here is a recommendation to buy or sell Meta stock. The profit angle is on the spending side:
- Build for Meta’s surfaces. AI advertising, Reels, and business messaging are where Meta says returns already show — offer AI ad creative and automation services to its advertisers.
- Sell to the AI supply chain. Services around deployment, monitoring, and optimization ride the same wave.
- Watch the preferred shares. A listed METAM preferred, if priced near reports, is a new income instrument worth studying — not a tip.
- Prepare for AI glasses and agents. Early skills in agent workflows and wearable content will be scarce and billable.
- Do not mistake a plan for cash. The $60 billion ATM is unfinalized — judge spending by filed results, not ceilings.
What is still unknown
Pricing is unset, the ATM has no agreement, and chipmaker interest is non-binding. Watch the pricing releases — they fix the real cost of this raise.
Frequently asked questions
How much is Meta raising?
$35 billion launched now, plus up to $60 billion planned via Class C — up to $95 billion in total.
What is the METAM ticker?
Meta’s proposed Nasdaq ticker for the preferred depositary shares, converting around August 15, 2029.
When does Meta get the common-stock cash?
Not upfront — proceeds arrive at settlement, by November 19, 2027 at the latest.
Are Nvidia, AMD, and Broadcom buying Meta shares?
Non-binding interest in up to $5 billion combined. Interest is not a commitment.
Why does Meta need equity if it is profitable?
Because $135–145 billion of 2026 capex plus $825 billion in commitments exceeds operating cash flow — Q3 even saw negative free cash flow.
Is the $60 billion program certain?
No. Meta has not signed an agreement for it, and it is not expected before the first quarter of 2027.
Where is the official announcement?
Meta’s release: Meta’s official offering announcement.