Meta shares fall before open on AI plans, new stock issuance
META•META•META•META•Meta shares fell more than 1.5% premarket after the company announced plans to issue non-voting Class C shares in January 2027 to fund its AI push. Meta beat Q3 revenue estimates, forecast Q4 revenue above estimates and set its annual capital expenditure outlook at $135 billion to $145 billion.
Meta shares fell more than 1.5% before the market opened after the company announced it would issue new non-voting Class C shares in January 2027 to fund its AI push.
Meta beat Q3 revenue estimates and forecast Q4 revenue above Wall Street estimates. It tightened its annual capital expenditure outlook to $135 billion to $145 billion, from $130 billion to $145 billion, and reported a Q3 free cash flow deficit of $2.12 billion.
The company said its new AI agent, Muse, signed up more than 10 million users in its first six weeks. TD Cowen analysts expect Meta to issue equity and/or debt to fund its AI infrastructure buildout over the next few years, reflecting the growing cost burden of AI investments.
