Meta shares rose 2.3% premarket after launching offerings of $22.5 billion in common stock and $12.5 billion in mandatory convertible preferred stock to fund AI expansion. The company also plans a separate share-sale program of up to $60 billion after its non-voting Class C shares are expected to begin trading in Q1 2027.
Meta launched concurrent public offerings of $22.5 billion in common stock and $12.5 billion in three-year mandatory convertible preferred stock. Nvidia, Advanced Micro Devices and Broadcom indicated they would buy up to $5 billion of the equity offering as “cornerstone investors,” Meta said.
Meta said it plans a separate at-the-market share-sale program of up to $60 billion after its new non-voting Class C shares begin trading, which is expected in Q1 2027. The company said the investments will expand infrastructure and compute capacity to support AI opportunities.
Meta shares were up 2.3% at $657.50 in premarket trading. The stock fell 7% on Thursday after its issuance plans eclipsed a third-quarter revenue beat and strong fourth-quarter outlook; it was down 2.7% year to date at Friday's close, while the Nasdaq had advanced 11.7%.
