Key Stats for Meta Stock
- Price change for Meta stock in last 6 months: -7%
- $META Stock Price as of Oct. 26: $631
- 52-Week High: $780
- $META Stock Price Target: $846
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Meta Platforms (META) said on Monday it plans to raise up to $95 billion, which would be the company’s largest equity raise ever. The money will help pay for its AI buildout.
The plan has two parts.
- First, Meta launched public offerings of about $35 billion in common and preferred stock.
- Second, it plans a separate share sale program worth up to $60 billion.
That larger program will start after its new non-voting Class C shares begin trading, which is expected in the first quarter of 2027.
Nvidia, AMD and Broadcom have also shown interest in buying up to $5 billion of Class A shares in total.
That raises a question for some investors as chip suppliers would be helping fund one of their biggest customers.
Meta stock fell about 2% during the day.
See analysts’ growth forecasts and price targets for Meta stock (It’s free) >>>
What the Market Is Telling Us About Meta Stock
Investors are weighing the size of the raise against the cash Meta is burning.
The company has committed to spend about $825 billion in the future, mostly on data centers and AI infrastructure.
It also lifted the low end of its 2026 capital spending forecast to $135 billion to $145 billion.
That spending is hitting cash flow. Meta reported negative free cash flow of $2.12 billion in the third quarter, which was the first negative quarter in over a decade. A year ago, free cash flow was positive $10.63 billion.
The core business is still strong. Q3 revenue was $64.6 billion, up 26%, and the company also says its new AI agent, Muse, has been set up by more than 10 million people in the U.S. and Canada. About 25% of them use it on any given day.
Analysts at William Blair said investors will keep questioning the financing and possible future raises.
They also said the raise shows Meta’s confidence in long-term AI returns and added that the path may not be linear.
Meta isn’t alone here. Earlier this year, Alphabet increased its equity offerings to $84.75 billion. Big tech companies are leaning more on debt and equity than on cash alone.
For Meta stock, the key question is whether AI spending pays off. Anyone following Meta stock should watch how Muse grows and how free cash flow trends in the coming quarters.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is Meta stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what META stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
