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Meta Announces Pricing of Offering of Depositary Shares Representing Series A Mandatory Convertible Preferred Stock and Offering of Class A Common Stock in Conn

, /PRNewswire/ -- Meta Platforms, Inc. (Nasdaq: META) ("Meta" or the "Company") announced today the pricing of its previously announced concurrent separate underwritten public offerings of (i) 250,000,000 series A depositary shares ("Depositary Shares"), each representing a 1/20th interest in a share of newly issued 6.50% Series A Mandatory Convertible Preferred Stock, par value $0.000006 per share ("Preferred Stock"), at a public offering price of $50 per Depositary Share (the "Depositary Shares Offering") and (ii) $25.0 billion of shares of Class A common stock, par value $0.000006 per share ("Class A Common Stock") offered in connection with the forward sale agreements described below, at a public offering price of $625.00 per share (the "Common Stock Offering" and, together with the Depositary Shares Offering, the "Offerings"). The Common Stock Offering was upsized to $25.0 billion from the previously announced offering size of $22.5 billion.

Meta has granted to the underwriters of the Depositary Shares Offering a 30-day option to purchase up to an additional 37,500,000 Depositary Shares at the public offering price less the applicable underwriting discount, solely to cover over-allotments, if any. The net proceeds from the Depositary Shares Offering will be approximately $12.5 billion (or approximately $14.3 billion if the underwriters exercise in full their over-allotment option to purchase additional Depositary Shares) after deducting the applicable underwriting discount and estimated offering expenses payable by Meta. Meta intends to use the net proceeds from the Depositary Shares Offering for general corporate purposes.

Holders of the Depositary Shares will be entitled to a proportional fractional interest in the rights and preferences of the Preferred Stock, including conversion, dividend, liquidation and voting rights, subject to the provisions of a deposit agreement. The Preferred Stock will accumulate dividends (which may be paid initially in cash or, subject to certain limitations, in shares of Class A Common Stock or in any combination of cash and Class A Common Stock) at a rate per annum equal to 6.50% on the liquidation preference thereof, which is $1,000 per share, payable when, as and if declared by Meta's board of directors (or an authorized committee thereof), on February 15, May 15, August 15 and November 15 of each year, beginning on February 15, 2027 and ending on, and including, August 15, 2029. Unless earlier converted, each outstanding share of Preferred Stock will automatically convert for settlement on or about August 15, 2029, into between 1.3620 and 1.6000 shares of Class A Common Stock (and, correspondingly, each Depositary Share will automatically convert into between 0.0681 and 0.0800 shares of Class A Common Stock), subject to customary anti-dilution adjustments, determined based on the volume-weighted average price of the Class A Common Stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day prior to August 15, 2029 (the "final averaging period"). Notwithstanding the foregoing, upon the issuance of Meta's Class C common stock, par value $0.000006 per share (the "Class C Common Stock") to be established by Meta's Amended and Restated Certificate of Incorporation filed with the Secretary of State of the State of Delaware on October 21, 2026 and satisfaction of certain other conditions, (1) each share of Preferred Stock (and, correspondingly, each Depositary Share) will be convertible into shares of Class C Common Stock for settlement on or about August 15, 2029 in a number not less than the then-current minimum conversion rate nor greater than the then-current maximum conversion rate, determined based on the volume-weighted average price of the Class C Common Stock during the final averaging period, (2) other than during a fundamental change conversion period (as defined in the prospectus supplement relating to the Depositary Shares Offering), at any time after the 50th trading day immediately following the Class C Dividend Trigger Date (as defined in the prospectus supplement relating to the Depositary Shares Offering) and prior to the mandatory conversion settlement date, a holder of 20 Depositary Shares may cause the bank depositary to convert one share of Preferred Stock, on such holder's behalf, into a number of shares of Class C Common Stock equal to the then-current minimum conversion rate and (3) cumulative dividends with respect to the Preferred Stock may be paid in cash or, subject to certain limitations, in shares of Class C Common Stock or in any combination of cash and Class C Common Stock, at the election of Meta.  Currently, there is no public market for the Depositary Shares or the Preferred Stock. Meta has applied to list the Depositary Shares on the Nasdaq Global Select Market under the symbol "METAM." The Depositary Shares Offering is expected to close on October 29, 2026, subject to satisfaction of the conditions to closing.

Concurrently with the Depositary Shares Offering, Meta entered into forward sale agreements with Morgan Stanley Capital Services LLC and Goldman Sachs & Co. LLC (the "forward purchasers") initially with respect to an aggregate of 40,000,000 shares of the Class A Common Stock. Upon the issuance of the Class C Common Stock and satisfaction of certain other conditions, Meta expects that such forward sale agreements will reference both the Class A Common Stock and the Class C Common Stock. In connection with these forward sale agreements, the forward purchasers or their respective affiliates are expected to borrow from third parties and have agreed to sell to the underwriters in the Common Stock Offering an aggregate of 40,000,000 shares of the Class A Common Stock.  The Common Stock Offering is expected to close on October 29, 2026, subject to satisfaction of the conditions to closing.

Meta has also granted the underwriters of the Common Stock Offering a 30-day option to purchase up to $3.75 billion of additional shares of the Class A Common Stock. If such option is exercised, Meta expects to enter into additional forward sale agreements with each of the forward purchasers in respect of the number of shares of the Class A Common Stock that is subject to the exercise of such option. Meta does not expect to initially receive any proceeds from the sale of shares of Class A Common Stock by the forward purchasers (or their affiliates) in the Common Stock Offering. At an initial forward price of approximately $622.92 per share (which is approximately the price at which the underwriters of the Common Stock Offering have agreed to buy the shares of Class A Common Stock offered thereby), Meta expects to receive net proceeds, before expenses, from the Common Stock Offering of approximately $24.9 billion (or approximately $28.7 billion if the underwriters of the Common Stock Offering exercise in full their option to purchase additional shares of Class A Common Stock), subject to the price adjustment and other provisions of the forward sale agreements, upon settlement of the forward sale agreements, which Meta expects to occur on or prior to November 19, 2027. Meta intends to use the net proceeds it receives upon future settlement of the forward sale agreements and any additional forward sale agreements for general corporate purposes.

Pursuant to the terms of the forward sale agreements and any additional forward sale agreements, Meta intends to issue and deliver, upon settlement of the forward sale agreements or any additional forward sale agreements, on one or more dates specified by Meta on or prior to November 19, 2027, an aggregate of  40,000,000 shares of Class A Common Stock (or an aggregate of  46,000,000 shares of Class A Common Stock if the underwriters exercise their option to purchase additional shares in full and if Meta enters into additional forward sale agreements with respect to such shares) to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price, which will be approximately $622.92, subject to certain adjustments as provided in the forward sale agreements and any additional forward sale agreements. Notwithstanding the foregoing, upon the issuance of the Class C Common Stock and satisfaction of certain other conditions, these forward sale agreements will reference both the Class A Common Stock and the Class C Common Stock and, in certain circumstances, Meta will have the ability to settle all of the forward sale agreements through the delivery of only shares of Class C Common Stock.

The completion of the Depositary Shares Offering is not conditioned upon completion of the Common Stock Offering, and the completion of the Common Stock Offering is not conditioned upon completion of the Depositary Shares Offering.

Morgan Stanley and Goldman Sachs & Co. LLC are acting as lead joint bookrunning managers for the Offerings. Allen & Company LLC, BDT & MSD, Centerview Partners, Jefferies, Lazard, and The Raine Group are acting as co-managers for the Offerings.

A registration statement on Form S-3 (including a prospectus) relating to these securities has been filed with the Securities and Exchange Commission (the "SEC") and has become effective. Each Offering may be made only by means of a prospectus supplement and accompanying prospectus. When available, copies of the final prospectus supplements and accompanying prospectuses related to the Offerings can be obtained by visiting the SEC's website at http://www.sec.gov or by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by email at [email protected]; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at 1-866-471-2526 or by email at [email protected].

This release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor does it constitute an offer, solicitation or sale of these securities, in any jurisdiction in which such offer, solicitation or sale is unlawful.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements. All statements contained in this press release other than statements of historical fact, including statements relating to the Offerings, the establishment and issuance of Class C Common Stock, the effectiveness of the Amended and Restated Certificate of Incorporation, our ability to complete the Offerings on the anticipated timeline or at all and the anticipated use of the net proceeds therefrom, as well as statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial conditions, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in our most recent Quarterly Report on Form 10-Q and in our other filings with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Unless expressly indicated or the context requires otherwise, the terms "Meta," "Company," "we," "us," and "our" in this document refer to Meta Platforms, Inc., a Delaware corporation, and, where appropriate, its subsidiaries.

About Meta

Meta is building the future of human connection, powered by artificial intelligence and immersive technologies. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving toward building experiences that foster deeper connections and unlock new possibilities.

Contacts

Investors:
Rob Bevegni
[email protected] / investor.atmeta.com

Press:
Matt Tye
[email protected] / meta.com/news

SOURCE Meta

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Three analysts remain bullish on Meta after the company announced plans to raise $95 billion through equity financing, though they raised questions about the company's growing investments in artificial intelligence (AI), Seeking Alpha reported Monday (Oct. 26).

Meta Platforms (META -1.88%), the owner of Facebook, Instagram, and WhatsApp, makes nearly all of its money from ads. As of Oct. 22, the stock is down about 10% from its September high of $779.82. This is despite a strong third-quarter earnings report, with revenue growing 26% year over year.

One reason I see the dip as a buying opportunity is that Meta is building new revenue streams that could make it an even stronger business over time. Meta's non-ad revenue from its apps grew 59% to $1.1 billion. Management said this growth came mainly from WhatsApp paid messaging -- businesses paying to message their customers on the app -- and subscriptions.

Another non-advertising revenue stream is Meta One, a subscription service that unlocks extra features across the company's apps, which has passed 15 million subscriptions and trials. That's less than 2% of Meta's total revenue today, but it's growing more than twice as fast as the company overall.

Image source: Getty Images.

The runway is long. Meta estimates at least 500 million small businesses use its apps to reach customers, a ready-made market for paid messaging and AI business tools. CFO Susan Li said the company is starting new AI businesses that could start contributing to revenue growth in 2027, with the potential to scale "meaningfully" over the long term.

META Meta Platforms$630.56-$12.06 (-1.88%)

NASDAQ · As of 4:00 PM ET 10/26/26

The main near-term headwind for the stock is heavy spending: Meta plans to spend up to $145 billion on capital expenditures this year, but management expects strong revenue growth to continue in 2027.

Meta stock trades at about 19 times analysts' 2027 earnings estimate -- roughly in line with the S&P 500's average forward multiple of 19.3. I believe that's a reasonable price for a business with a daily user base of over 3.6 billion and the ability to reach new users through AI services over time.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

Key Takeaways Surging debt fears have caused Neocloud sell-offs.Elon Musk cautioned that many Neocloud companies will fail.Despite Musk's dire warnings, Neocloud stocks rallied on Monday.
Understanding the Neocloud Debt ConcernsUntil recently, Neoclouds, specialized cloud computing providers built specifically for artificial intelligence, have been among the best-performing stocks on Wall Street. However, over the past few weeks, investors in Neocloud stocks such as Nebius Group ((NBIS - Free Report) ), IREN ((IREN - Free Report) ), and CoreWeave ((CRWV - Free Report) ) have endured immense selling pressure and volatility amid rising debt concerns.

Image Source: Zacks Investment Research

What Caused Neocloud Stocks to Plunge?On October 14th, CoreWeave shares fell more than 15% as bond yields jumped to distressed levels and Gartner warned of potential for slowdowns in AI infrastructure spending. After the initial pressure, a second wave hit after Meta Platforms ((META - Free Report) ) reported its first negative free cash flow quarter as a public company, sparking Wall Street concerns about the growing mismatch between massive Capex spending and cash flow.

Image Source: Zacks Investment Research

Musk Sounds the Alarm on Neocloud StocksOver the weekend, Elon Musk sounded the alarm on pure-play Neocloud companies, saying:

“As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers. SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch revenue. That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through but not many.”

News Failure: Neoclouds Rally Despite Musk WarningSeasoned investors know that monitoring price action relative to the news is more valuable than monitoring the news alone. Historically, stocks bottom on bad news. For example, on March 18th, 2020, billionaire investor Bill Ackman appeared on financial news TV and warned that “Hell is coming!” due to COVID-19 lockdowns. Three days later, the stock market bottomed and never looked back.

Image Source: TradingView

Monday’s action in Neocloud stocks eerily mirrors Bill Ackman’s warning during COVID. Most investors would assume Neoclouds would plunge further after Elon Musk’s dire warning. However, on Monday, Neocloud stocks delivered a classic expectation breaker, ripping from red to green, and setting the stage for a potential bottom.

Bottom Line

While tighter debt markets and heavy capital expenditures pose a real hurdle for pure-play Neoclouds, market history suggests the worst fears may already be priced in. The surprising resilience of Neocloud shares after high-profile warnings mirrors past market bottoms, when asset prices reversed course just as headlines seemed most dire.

Meta Platforms Inc. is seeking to raise as much as $95 billion from selling common and preferred stock to support its development in artificial intelligence. Bloomberg's Sarah Frier reports.

Meta Platforms is planning to pump up to $95 billion into its artificial intelligence buildout – despite investor anxiety over the eye-watering sums the social-media company has already plowed into AI.

The social media giant headed by Mark Zuckerberg laid out a plan to raise the capital via stock offerings that could kick off as soon as early next year. The spending spree would be funded by roughly $35 billion in public offerings, including $22.5 billion of Class A common stock and $12.5 billion of depositary shares representing mandatory convertible preferred stock.

Meta is also planning an at-the-market stock offering program of up to $60 billion, in which it will create a new class of nonvoting stock. Meta could sell shares of its new “Class C” stock over time, though it hasn’t finalized the arrangement, the company said.

Mark Zuckerberg, chief executive officer of Meta, has laid out a plan to raise capital to fund an AI buildout via stock offerings, which could kick off as soon as early next year. SHAWN THEW/EPA/Shutterstock
Meta said that Nvidia, Advanced Micro Devices and Broadcom have shown interest in buying up to $5 billion worth of common stock in the offering.

Meta’s massive investment plan comes as tech giants are betting the farm on AI – total investment in data centers and related AI infrastructure is projected to total $10.3 trillion from 2025 to 2032, per the Wall Street Journal.

Investors have at times been anxious about Zuckerberg’s pricey AI push. Meta notched record third-quarter revenue but investors expressed concern over how the company will raise capital to fund its AI ambitions.

Meta’s stock fell by about 1% as the market opened Monday but regained most of those losses in afternoon trading.

Jensen Huang, co-founder, president and CEO of US technology company Nvidia. AFP via Getty Images
Meta has pinned much of its AI hopes on its recently launched AI agent Muse and has rejiggered the company around its Superintelligence Labs which houses Muse. Zuckerberg has said he wants to create “a large-scale Muse network” where billions of Muse agents supercharge work for people and businesses. 

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Meta’s AI ambitions have already ballooned its capital expenditures, which are expected to reach up to $145 billion this year.

Meta said AI is helping it launch new products such as AI-enabled smartglasses and its Muse agent. The company has also said AI is boosting user engagement and improved advertising performance.

The intertwined finances of a handful of AI giants – including those that have expressed interest in Meta’s planned stock offering – has at times rattled Wall Street. An AI pullback could have an outsized impact on companies that are propping up each other’s investments in the technology, investors have said. 

Meta Platforms (META +0.33%) has made a habit this year of posting a strong quarter and then seeing its stock sink the next day. Shares fell around 7% on Oct. 22, after the company said third-quarter revenue rose 26% year over year. This followed post-earnings drops of about 9% on April 30 and 8% on July 30.

That's a big change from January, when the stock popped about 10% after Meta's fourth-quarter report.

The stock now trades near $649 as I write, about 17% under its Sept. 24 close of about $778 (its highest close in about a year). Yet, for all the selling, shares are down just about 3% for 2026.

Looking back at each report, I think the selling had more to do with what Meta is spending than with what it's earning.

Image source: Getty Images.

Spending, every timeThe first-quarter numbers in April were excellent on their own. Revenue climbed 33% year over year to $56.3 billion, Meta's fastest growth since 2021.

But management also lifted its 2026 outlook for capital expenditures (including principal payments on finance leases) to a range of $125 billion to $145 billion, up from $115 billion to $135 billion. CEO Mark Zuckerberg said on the first-quarter earnings call that most of the increase was "due to higher component costs, particularly memory pricing."

July's report showed what that spending does to cash. Free cash flow dropped to $784 million in the second quarter, from $8.5 billion the year before. And Meta's third-quarter revenue forecast pointed to year-over-year growth between 19% and 25%, down from 28%.

In October, free cash flow went negative, at minus $2.1 billion. Meta also raised the bottom of its 2026 spending range to $135 billion and said it plans to keep "investing aggressively" in 2027.

Meta's revenue growth has slowed a bit this year, from 33% in the first quarter to 28% in the second and 26% in the third. But for a social media company taking in around $64.6 billion a quarter, 26% growth is still impressive.

Showing how steady the main business has been, Meta's operating cash flow was $32.2 billion in the first quarter, $31.9 billion in the second, and $32.8 billion in the third. Capital expenditures, meanwhile, climbed every quarter, from $19.8 billion to $31.1 billion to $34.9 billion. In other words, nearly all of the slide in free cash flow came from spending, but the cash coming in hardly budged.

Of course, operating cash flow grew just 9% year over year in the third quarter, down sharply from 34% early in the year.

That said, advertisers are still paying up. The average price per ad rose 14% in the third quarter, accelerating from 12% in both prior quarters. And management's forecast of $73 billion to $76 billion for fourth-quarter revenue points to 22% to 27% growth year over year.

After the sell-offsBuying after a drop has played out very differently this year. After the April 30 sell-off, shares swung between around $543 and $681 before closing at about $586 the day of the July report -- below where they finished April 30.

But investors who bought after the July 30 drop, when the stock closed near $539, watched it rise about 44% to the Sept. 24 close.

The next report might mean more selling. Meta spent around $85.8 billion on capital expenditures through September, so its full-year range points to fourth-quarter spending of about $49 billion to $59 billion. Free cash flow may sink further below zero.

"[W]e don't have anything more specific or quantitative to share until we get to the Q4 call which is typically when we share guidance for the next year," CFO Susan Li said on the third-quarter earnings call, when asked about 2027.

META Meta Platforms$644.73+$2.11 (+0.33%)

NASDAQ · As of 11:13 AM ET 10/26/26

At around $649, the stock trades at about 19 times expected earnings in 2027. The S&P 500 (^GSPC +0.94%) trades at about 19 times forward earnings, so investors are paying about a market-average price for a company still growing revenue more than 20%.

Legal costs might drag down results, too. The third quarter had a $9.9 billion charge tied to an agreement with state attorneys general. Separately, a New Mexico judge ordered Meta on Oct. 21 to pay a $25 billion civil penalty under the state's consumer protection law. The company said it'll appeal.

But I think the stock is worth a look after this latest drop. Meta keeps pulling in around $32 billion in operating cash each quarter, even while the spending grows. With Meta's 2027 budget still unknown, I'd consider buying bit by bit. A fourth drop after the next report wouldn't surprise me.

SummaryMeta Platforms, Inc. delivered formidable 26% Y/Y revenue growth and strong Q4 guidance, with core ad business showing robust pricing power from AI-driven improvements.Despite operational strength, META's elevated CapEx and new Class C share structure signal a shift toward external funding, raising dilution and capital structure concerns.Impression growth is decelerating, and upcoming 2027 CapEx guidance, combined with potential share issuance, introduces downside risk to the investment thesis.I downgrade META stock to Buy from Strong Buy, as the company’s ambitions now require shareholder funding rather than internally generated free cash flow. Derick Hudson/iStock Editorial via Getty Images

Introduction It has been over 2 months since I last covered one of my largest holdings, Meta Platforms, Inc. (META), and it has fared relatively well since I last rated it

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Have you evaluated the performance of Meta Platforms' (META - Free Report) international operations during the quarter that concluded in September 2026? Considering the extensive worldwide presence of this social media company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Our review of META's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

For the quarter, the company's total revenue amounted to $64.6 billion, experiencing an increase of 26.1% year over year. Next, we'll explore the breakdown of META's international revenue to understand the importance of its overseas business operations.

Decoding META's International Revenue TrendsAsia-Pacific generated $16.99 billion in revenues for the company in the last quarter, constituting 26.3% of the total. This represented a surprise of +0.68% compared to the $16.88 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $16.07 billion (26.4%), and in the year-ago quarter, it contributed $14.3 billion (27.9%) to the total revenue.

Of the total revenue, $14.02 billion came from Europe during the last fiscal quarter, accounting for 21.7%. This represented a surprise of -3.78% as analysts had expected the region to contribute $14.57 billion to the total revenue. In comparison, the region contributed $14.01 billion, or 23%, and $11.57 billion, or 22.6%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Rest of the world contributed $7.37 billion in revenue, making up 11.4% of the total revenue. When compared to the consensus estimate of $7.88 billion, this meant a surprise of -6.53%. Looking back, Rest of the world contributed $6.86 billion, or 11.3%, in the previous quarter, and $5.66 billion, or 11.1%, in the same quarter of the previous year.

Anticipated Revenues in Overseas MarketsFor the current fiscal quarter, it is anticipated by Wall Street analysts that Meta Platforms will post revenues of $75.05 billion, which reflects an increase of 25.3% the same quarter in the previous year. The revenue contributions are expected to be 18% from Asia-Pacific ($13.51 billion), 23.3% from Europe ($17.49 billion) and 12.2% from Rest of the world ($9.14 billion).

For the full year, the company is projected to achieve a total revenue of $255.63 billion, which signifies a rise of 27.2% from the last year. The share of this revenue from various regions is expected to be: Asia-Pacific at 18.6% ($47.48 billion), Europe at 23.4% ($59.75 billion), and Rest of the world at 13.6% ($34.83 billion).

Concluding RemarksMeta Platforms' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Currently, Meta Platforms holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Meta Platforms' Recent Stock Market PerformanceOver the preceding four weeks, the stock's value has diminished by 14.5%, against a downturn of 1.2% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Meta Platforms among its entities, has depreciated by 7.7%. Over the past three months, the company's shares have seen an increase of 15.4% versus the S&P 500's 2.5% increase. The sector overall has witnessed an increase of 0.3% over the same period.

Meta Platforms META shares fell in early trading on Monday before recovering, as the company announced a $35 billion equity raise to fund its artificial intelligence ambitions amid persistent investor concerns about its spending plans. Shares of Meta fell close to 2% in early trading but gained roughly 0.2% around 11:20 AM EST following last week's sharp sell-off.

Sawyer and Company Inc acquired a new position in shares of Meta Platforms, Inc. (NASDAQ: META) in the undefined quarter, according to its most recent disclosure with the SEC. The fund acquired 8,864 shares of the social networking company's stock, valued at approximately $6,428,000. Meta Platforms comprises approximately 2.2% of Sawyer and Company

Meta said Monday it is planning to raise a total of $95 billion to support its investments in AI infrastructure and superintelligence.

The stock was up 1.6% in premarket trading after the announcement. Nvidia, AMD and Broadcom were interested in purchasing up to $5 billion in shares, Meta said in a statement.

The tech giant will initially raise $35 billion in underwritten public equity offerings, before raising an additional $60 billion with an at-the-market program.

The news comes as hyperscalers pour record sums into the AI infrastructure buildout. Goldman Sachs estimates that AI-related capital spending could total about $7.6 trillion from 2026 through 2031, across compute, data centers and power.

Meta's planned investments will support "emerging AI opportunities" including its family of apps, its AI agent Muse and its data center business, the company said Monday.

It plans to balance funding for these investments through a mix of operating cash flow, investment-grade debt, partnerships and equity capital.

Meta racing to secure AI infrastructureMeta is among the major hyperscalers that are increasingly tapping debt to fund the expensive infrastructure required for the AI boom.

Last week, Meta posted third-quarter results showing revenue jumped 26% year-on-year: $64.60 billion versus the $63.37 billion analysts expected. However, investors focused more on the tech company's negative free cash flow and its higher full-year capital expenditure forecast.

It now expects its full-year capex to range from $135 billion to $145 billion, raising the bottom of the range from $130 billion. That sent shares lower on the day.

Meta is building four "superclusters" with more than one gigawatt of capacity each and is on track to nearly double total infrastructure capacity in 2026 on a year-over-year basis, the company said.

The decision to raise more money "reflects the eye-watering levels of investment required to keep up in the AI arms race," Ben Wood, senior partner at CCS Insight, told CNBC. 

"Meta offering more stock comes at a time when numerous companies, such as Google, SpaceX and soon, Anthropic, are going to the markets to raise funds."

Alphabet, Google's parent company, said it would look to raise $85 billion in June. SpaceX has closed a $40 billion debt financing to purchase graphics processing units. Anthropic is preparing for an IPO.

TikTok U.S. is looking to secure multiple gigawatts of computing capacity over the coming years, CNBC reported on Friday.

Meta says share sale will support its “continued investment in AI infrastructure and personal superintelligence”, as Elon Musk warns some AI cloud computing firms face ‘guppy-level death'

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Although artificial intelligence (AI) has been the hottest thing since sliced bread, it's not the only trend responsible for lifting the stock market to new heights. Investors gravitating toward Wall Street's premier stock-split stocks have also played a key role in the market's outperformance.

Several high-profile stock splits have been announced this year, including cybersecurity titan CrowdStrike Holdings (CRWD +8.25%) and beverage behemoth Monster Beverage (MNST -2.35%). But last week, Wall Street's most anticipated blockbuster stock split was announced by social media maven Meta Platforms (META -0.96%) -- and it's anything but conventional.

Image source: Getty Images.

Stock-split stocks are all the rage on Wall StreetA stock split is an event that allows a public company to adjust its share price and outstanding share count by the same factor, without affecting its market cap or underlying operating performance.

Though stock splits come in two varieties, investors favor one far more than the other. Reverse stock splits, which are designed to increase a company's share price, are typically shunned. This type of split is commonly undertaken by struggling companies trying to avoid delisting from a major stock exchange.

META Meta Platforms$642.62-$6.23 (-0.96%)

NASDAQ · As of 4:00 PM ET 10/23/26

By comparison, investors often flock to companies announcing forward stock splits. This type of split reduces a public company's share price (and increases its outstanding share count by the same factor) to make it more nominally affordable for retail investors who can't buy fractional shares through their broker.

To date, every member of the "Magnificent Seven" has completed at least one forward split, except for Mark Zuckerberg's Meta Platforms. In early 2027, that'll change.

Image source: Getty Images.

Meta's historic first stock split is on the wayIn Meta's third-quarter earnings release, the company announced the creation of a new class of non-voting common stock (Class C), with an effective date of Jan. 19, 2027. Holders of the company's Class A shares will receive a one-for-one stock dividend for Class C shares sometime after this effective date in January. In other words, establishing this new share class acts as an unconventional 2-for-1 stock split.

The bigger story is that this stock split was long overdue, as Meta shares have rallied roughly 1,600% since its May 2012 initial public offering (IPO). Gains of this magnitude don't happen by accident. They reflect the company's prime position as a social media and AI leader.

In September, Meta's family of apps, including Facebook, Instagram, WhatsApp, and Threads, drew an average of 3.64 billion people per day to its platforms. Given that no other social media platform comes close to this figure, Meta tends to enjoy exceptional ad-pricing power. Not surprisingly, the average price per ad jumped 14% in the September-ended quarter.

$META Meta Q3 FY26: • Daily active people +3% Y/Y to 3.64B. • Ad impressions +10% Y/Y. • Revenue +26% Y/Y to $64.6B ($1.1B beat). • EPS $3.83 ($3.83 miss). • $10B youth-safety legal charge. • FY26 CapEx $135B to 145B (narrower). https://t.co/LYq3Fy3A2g

— App Economy Insights (@EconomyApp) October 21, 2026 But it's Meta Platforms' AI ambitions that have provided the pep in its step of late. Zuckerberg's company is already integrating generative AI solutions into its ad platforms, allowing businesses to create unique static and video messages for users, and boosting its ad-pricing power.

Furthermore, similar to neocloud companies, Meta intends to sell its excess AI computing power. Though Meta's AI capital expenditures are jaw-dropping, its plan to recapture some of these costs by selling excess AI compute represents another high-margin, fast-growing initiative.

This'll likely be the first of many stock splits for Meta Platforms.

Meta Platforms (META -0.96%) is one of the major players in this artificial intelligence (AI) revolution. Though the company's biggest source of income is advertising through its social media platforms, it has big AI dreams. Meta has spent billions of dollars on the build-out of its own data centers and just recently took a significant step toward the monetization of its investments -- the launch of its Muse personal AI agent and its Muse Wonder and Muse Wonder Full advanced models.

So, investors looking for AI stocks to buy may turn to Meta, and that's what they did from the start of this year through early September. But in recent times, that momentum has stalled, to be replaced by caution. The stock has slipped 17% from a peak last month amid general concerns among investors about spending on AI infrastructure. Some investors worry that an AI bubble has formed, and that any slowdown in the AI space could significantly hurt the biggest spenders.

Meanwhile, Meta's earnings continue to march higher, thanks to advertising growth and its solid social media business.

Considering the full picture, is Meta stock a buy on the dip? Let's find out.

Image source: The Motley Fool.

More than 3 billion people use Meta apps dailyAs I mentioned, when you think of Meta, you may think: Facebook, Messenger, WhatsApp, and Instagram. Those are the social media apps the company owns, and about 3.6 billion people worldwide use at least one of those daily. And this has built advertising strength for Meta. Advertisers, seeing how much time we all spend on Meta's apps, rush there to reach us.

This has resulted in earnings growth over time for Meta, and the company's investment in AI could seriously reinforce this revenue stream. That's because Meta's AI is making its social media apps more interesting, which will keep us on them longer, and AI is improving the advertising experience and results. All of this should please advertisers and progressively prompt them to increase their spending here.

META Meta Platforms$642.62-$6.23 (-0.96%)

NASDAQ · As of 4:00 PM ET 10/23/26

Meanwhile, Meta's launch of the Muse AI agent and its advanced models represent additional sources of revenue. The personal AI agent is free to a certain extent, but those with greater usage needs may pay for a subscription. So far, the free app has proven to be popular, reaching 5 million downloads more quickly than ChatGPT and Claude after their launches.

Advances in earnings and advertisingMeta's recent earnings report further confirmed its earnings strengths, with revenue surpassing analysts' estimates and double-digit advances in ad impressions and ad prices. But investors frowned on Meta's ongoing high levels of spending on AI -- the company expects full-year capex to be in the range of $135 billion to $145 billion. That's narrowed from the earlier forecast of $130 billion to $145 billion. Meta reiterated that this spending story isn't over and it will continue to heavily invest beyond next year. This weighed on the stock, prompting declines after the earnings release.

Now, let's return to our question: Is Meta a buy on the dip?

We'll consider a couple of points here. Meta and peers are spending heavily on AI infrastructure as it's needed to accomplish their goals. Risk exists that the revenue opportunity won't justify such levels of spending -- it's impossible to predict what may happen in the future with 100% accuracy. And the S&P 500 as a whole has soared over more than three years, so a pullback could occur, and tech stocks like Meta might decline.

But it's important to keep our eyes on the long-term story. So far, the demand we've seen and the capabilities of AI suggest that this technology may indeed be a revolutionary one. And that means companies that have gotten in early and led the way could score a significant win.

Meta has a sound social media business that allows it to generate revenue, remain profitable, and continue along the AI research and development path. Meanwhile, its new products offer it the ability to start generating some revenue from the AI investment.

At the same time, the stock, trading at 21x forward earnings estimates, looks reasonably priced considering the complete picture. All of this makes Meta a great growth stock to buy on the dip.

Plus, how America's cheapest EV fared on a Deep South road trip, Demis Hassabis's quest to solve the world's mysteries with AI, our iPhone Duo review and more.

Meta Platforms (META -0.96%) reported better-than-anticipated third-quarter earnings, but you wouldn't know it from the drop in stock price. Shares of Meta fell more than 7% Thursday and have decreased nearly 10% over the past week. Should investors buy the dip? Let's have a look.

$642.62-$6.23 (-0.96%)

NASDAQ · As of 4:00 PM ET 10/23/26

Meta's business is picking up steam, with revenue growing 26% year over year to $64.6 billion. This soundly beat Wall Street's estimates. The problem is that Meta's spending is making investors nervous. Mark Zuckerberg's social media company saw its free cash flow swing to a negative $2.1 billion. This is the first negative free cash flow number since the company went public in 2012.

Furthermore, spending on AI infrastructure exploded 80% to nearly $35 billion. Management now expects capital expenditures to be between $135 billion and $145 billion for the full year, up from its previous guidance of $130 billion. Lastly, Meta plans to offer a new class of nonvoting shares to help finance this growth. This means dilution for current investors is very much on the table.

Image source: The Motley Fool.

Although spending is quite high, it appears to be paying off, as Meta's AI investments are driving stronger ad performance and engagement. There's still plenty of risk, and negative free cash flow could persist for several more quarters. Still, with revenue growing at this pace and its powerful ad business gaining even more strength, Meta's latest dip looks attractive.

Although the company's market cap is approaching $2 trillion, Meta's stock is also quite reasonably priced compared to many technology peers. More importantly, I've learned not to bet against Zuckerberg and his vision over the long term.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

The argument could be made that IonQ (IONQ +0.35%) is the most valuable quantum computing stock in the world right now, given that it is worth about $12.5 billion. The argument could also be made that there are at least a few other start-ups out there that could soon be worth even more.

For instance, I think a satellite imaging company and a nuclear start-up that has never sold a kilowatt of power will both be worth more than IonQ's current valuation in 2031. Not because IonQ is a bad company, but because that market cap is a much lower bar than most investors realize, and these two have clearer paths to topping it.

$31.27+$0.11 (+0.35%)

NYSE · As of 4:00 PM ET 10/23/26

IonQ has done real things. It bought the chipmaker SkyWater Technology for about $1.08 billion in July to own its own manufacturing; it has $3 billion in cash; and it has partnerships with several major cloud providers. 

Image source: Getty Images.

But IonQ's stock has lost half its value in a year, trailing revenue is about $246 million against a net loss north of $1.4 billion, and the business still depends on quantum computers becoming commercially useful on a timeline nobody can promise. A company like that can be worth $12.5 billion or $40 billion in 2031 depending on physics. The two companies below do not need physics to cooperate. They need to keep doing what they are already doing.

1. Planet Labs PBC: IonQ bought a satellite company. This is a real one. I thought this was a fun pick because it's somewhat of a coincidence: IonQ's own business description now includes a satellite data platform, because it bought its way into radar imaging. Planet Labs (PL +2.52%) has been doing the real version of that for a decade. It operates more than 100 satellites that photograph every point on Earth's landmass every day and sells that imagery as a subscription to governments and companies.

The business has quietly changed shape this year. Revenue in the quarter ended July 31 grew 58%, the net loss shrank to under $10 million, and backlog reached $815 million, which is more than two years of revenue already under contract. Net dollar retention was 109%, meaning existing customers are spending more, not less. Planet Labs also secured major expansions of defense and intelligence contracts in 2026, and it has begun building satellites for specific customers rather than only renting out its own fleet.

A company with $5 billion of market value, 58% growth, a path to profitability, and the only daily map of the planet needs to grow about 2.5x in five years to pass IonQ. At its current pace, that is a question of whether the stock keeps up with the business, not whether the business gets there.

PL Planet Labs PBC$13.41+$0.33 (+2.52%)

NYSE · As of 4:00 PM ET 10/23/26

2. Oklo: The first reactor changes everything Oklo (OKLO -2.44%) is the riskier pick and the more interesting one. It designs small fast-fission reactors it calls Aurora powerhouses, and its stock has collapsed over 75% in a year as investors grow impatient among repeated stock sales (including another $1 billion offering this month). What the sell-off ignores is the calendar. Site work is underway at Oklo's first plant at Idaho National Laboratory, with a planned start-up in 2028. In January, Oklo signed a prepayment agreement with Meta Platforms (META -0.96%) for a 1.2-gigawatt campus in Pike County, Ohio, with the first phase targeted to come online as early as 2030.

By 2031, then, Oklo could be an operating utility selling power to one of the largest companies on earth under long-term contracts, with a pipeline behind it. Companies that own power plants with 20-year customers are valued very differently from companies with slide decks. A $5 billion start-up becoming a $13 billion operator with a Meta contract is not a stretch; it is roughly what happens when a reactor turns on.

OKLO Oklo$26.35-$0.66 (-2.44%)

NYSE · As of 4:00 PM ET 10/23/26

That being said, IonQ could win this race anyway. If quantum computing hits a commercial inflection, a $12.5 billion starting point will look cheap. Planet Labs depends heavily on government budgets and carries about $450 million in debt it did not have a year ago, and Oklo could slip its 2028 date or keep diluting shareholders until the math stops working.

Meta Platforms (NASDAQ: META) could rally to $1,000 after completing a potential correction, according to a long-term technical analysis of its rising price channel.

The analysis, shared by TradingShot in a TradingView post on October 23, projects a rebound toward the 1.618 Fibonacci extension at $1,000, provided META maintains its long-term uptrend.

TradingShot noted that Meta stock has traded within a long-term ascending channel since its 2012 initial public offering (IPO), with much of its price action remaining between the 0.5 and 1 Fibonacci levels.

META stock price analysis chart. Source: TradingView
The latest pullback follows a double-top rejection after September’s high, with the stock already testing its weekly 100-period moving average, shown by the green trend line.

However, the analysis suggests the pullback could deepen, leaving META vulnerable to a decline toward $550 to $500 as the U.S. midterm elections approach.

This range coincides with the monthly 50-period moving average (MA) and the 0.5 Fibonacci level, potentially providing a significant support zone.

A similar setup occurred in December 2018, when Facebook stock tested its monthly MA50 before recovering and eventually reaching new all-time highs. 

TradingShot identifies that correction as a potential historical fractal for the current price action. If the pattern repeats, META could bottom near the projected support zone before resuming its long-term advance.

However, historical comparisons don’t guarantee the same outcome, and a sustained break below support would weaken the bullish outlook.

Despite the potential near-term downside, TradingShot’s long-term Meta stock price prediction remains bullish, with the 1.618 Fibonacci extension pointing to a target of $1,000.

From its October 23 closing price of $642, the target represents approximately 55.6% upside. Reaching that level would require Meta to recover from its current pullback and resume its advance within the ascending channel.

The monthly relative strength index (RSI) provides another potential bullish signal. If the indicator falls to 40 before META tests its monthly MA50 or reaches $550. 

Such a reading could signal a potential recovery, although it would not confirm that a reversal had begun.

Meta’s financial performance will also influence whether the stock can recover and sustain its longer-term uptrend.

The company reported third-quarter 2026 revenue of $64.60 billion on October 21, up 26% year over year. Advertising remained strong, with ad impressions increasing 10% and the average price per advertisement rising 14%. Meta also reported 3.64 billion daily active people across its family of applications in September.

However, total costs and expenses increased 68% to $51.61 billion, including a $9.89 billion legal charge related to an agreement with 52 U.S. state attorneys general. Meta reported operating income of $12.99 billion and negative free cash flow of $2.12 billion for the quarter.

The company expects fourth-quarter revenue of $73 billion to $76 billion and full-year 2026 expenses of $175 billion to $179 billion. Capital expenditure is projected at $135 billion to $145 billion this year, reflecting continued investment in artificial intelligence infrastructure and other initiatives.

Meta said its AI investments are already generating additional advertising revenue through stronger engagement, improved recommendations, and more efficient monetization. 

Sustaining that growth while managing infrastructure costs will be crucial to its longer-term performance.

Featured image via Shutterstock

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Focused Alpha LLC cut its holdings in Meta Platforms, Inc. (NASDAQ: META) by 58.7% in the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,331 shares of the social networking company's stock after selling 1,892 shares during the period. Focused

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Cornerstone National Bank & Trust Co boosted its holdings in shares of Meta Platforms, Inc. (NASDAQ:META – Free Report) by 5,233.3% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 800 shares of the social networking company’s stock after buying an additional 785 shares during the period. Cornerstone National Bank & Trust Co’s holdings in Meta Platforms were worth $581,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Horizons Wealth Management purchased a new stake in shares of Meta Platforms during the third quarter valued at approximately $33,000. Advantage Trust Co purchased a new position in Meta Platforms in the second quarter worth $28,000. Philadelphia Investment Partners LLC purchased a new position in Meta Platforms in the second quarter worth $32,000. Axiom Investment Management LLC bought a new position in Meta Platforms in the 1st quarter valued at $36,000. Finally, Schuylkill Financial LLC bought a new position in Meta Platforms in the 2nd quarter valued at $36,000. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

Meta Platforms Stock Performance NASDAQ META opened at $642.62 on Friday. The company’s 50 day moving average is $664.40 and its 200-day moving average is $629.72. Meta Platforms, Inc. has a 12-month low of $520.26 and a 12-month high of $779.82. The company has a quick ratio of 2.23, a current ratio of 1.90 and a debt-to-equity ratio of 0.30. The firm has a market cap of $1.64 trillion, a P/E ratio of 21.91, a price-to-earnings-growth ratio of 1.16 and a beta of 1.19.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The social networking company reported $7.40 EPS for the quarter, beating analysts’ consensus estimates of $6.54 by $0.86. Meta Platforms had a net margin of 31.15% and a return on equity of 30.73%. The company had revenue of $64.60 billion for the quarter, compared to analysts’ expectations of $63.34 billion. During the same period in the prior year, the company posted $7.25 EPS. Meta Platforms’s revenue was up 26.1% compared to the same quarter last year. Sell-side analysts predict that Meta Platforms, Inc. will post 28.01 earnings per share for the current year. Meta Platforms Announces Dividend The business also recently announced a quarterly dividend, which was paid on Monday, September 28th. Shareholders of record on Monday, September 21st were given a dividend of $0.5250 per share. The ex-dividend date was Monday, September 21st. This represents a $2.10 annualized dividend and a dividend yield of 0.3%. Meta Platforms’s dividend payout ratio is currently 7.91%.

Trending Headlines about Meta Platforms Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Strong Q3 operating performance: Meta reported $64.6 billion in revenue, up 26% year over year, and adjusted earnings of $7.40 per share versus expectations of roughly $6.54. AI-driven recommendations and advertising tools are improving engagement, ad pricing and conversions. META Q3 Earnings Beat Estimates Positive Sentiment: Muse adoption supports the AI thesis: Meta’s Muse AI agent has surpassed 10 million downloads, strengthening the case that the company could eventually monetize AI through subscriptions, enterprise services and additional advertising. However, meaningful revenue contribution is expected later, potentially from 2027 onward. Meta Muse Adoption Positive Sentiment: Analysts remain broadly constructive: UBS, Citigroup, Mizuho, JPMorgan, Bank of America and other firms raised or reaffirmed bullish ratings and price targets, citing resilient advertising growth and long-term AI potential. Some investors, including commentator Mike Khouw, view the selloff as a buying opportunity. Why Mike Khouw Is Buying Meta Neutral Sentiment: New Class C shares and a 2-for-1 split: Meta plans to issue one non-voting Class C share for each Class A and Class B share. The move should improve trading liquidity and give Mark Zuckerberg greater flexibility to sell shares or finance AI investment without surrendering voting control, but it does not by itself create economic value for shareholders. Meta’s New Non-Voting Shares Neutral Sentiment: Commercial terms delayed: Meta postponed controversial terms that publishers and advertisers said could authorize broader web scraping, moving implementation to November 20 from October 30. The delay may reduce near-term friction, though the underlying regulatory and customer concerns remain. Meta Delays Commercial Terms Negative Sentiment: AI spending is the main pressure: Meta lifted the lower end of its 2026 capital-expenditure forecast to $135 billion, with spending potentially reaching $145 billion. Free cash flow turned negative as infrastructure investment accelerated, while credit-default-swap costs reached records. Investors are questioning when Muse and other AI projects will generate returns. Meta AI Spending and Free Cash Flow Negative Sentiment: Legal and regulatory risks remain significant: Meta faces a $25 billion New Mexico privacy judgment, additional lawsuits alleging harm to children and scam advertising, and rising legal costs. The company plans to appeal the New Mexico ruling, but the liabilities add uncertainty and pressure margins. Meta New Mexico Privacy Judgment Wall Street Analyst Weigh In Several analysts have commented on the stock. Erste Group Bank raised shares of Meta Platforms from a “hold” rating to a “buy” rating in a research report on Tuesday, July 7th. Citizens Jmp reissued a “market outperform” rating and set a $885.00 target price on shares of Meta Platforms in a research report on Thursday. Royal Bank Of Canada raised their price target on shares of Meta Platforms from $770.00 to $800.00 and gave the stock an “outperform” rating in a research note on Thursday. Loop Capital lifted their price target on shares of Meta Platforms from $740.00 to $955.00 and gave the stock a “buy” rating in a report on Thursday, September 24th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $886.00 price target on shares of Meta Platforms in a report on Tuesday. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $833.12.

Read Our Latest Research Report on META

Insiders Place Their Bets In other Meta Platforms news, COO Javier Olivan sold 946 shares of Meta Platforms stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $707.20, for a total transaction of $669,011.20. Following the completion of the transaction, the chief operating officer owned 5,986 shares of the company’s stock, valued at $4,233,299.20. The trade was a 13.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher K. Cox sold 40,000 shares of the company’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $712.76, for a total transaction of $28,510,400.00. Following the sale, the insider directly owned 184,516 shares in the company, valued at $131,515,624.16. This trade represents a 17.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 149,906 shares of company stock worth $102,347,409 over the last 90 days. Corporate insiders own 13.53% of the company’s stock.

Meta Platforms Profile (Free Report)

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company’s principal platforms include Facebook, Instagram, Messenger, WhatsApp, and Threads, which enable users to connect, communicate, share content, and discover products and services.

Meta also operates Reality Labs, its division focused on virtual, augmented, and mixed reality technologies. Reality Labs develops products such as Meta Quest virtual reality headsets and related software and experiences, along with research and hardware intended to support immersive computing.

Further Reading Five stocks we like better than Meta Platforms Spotify Soars After Earnings as the Company Touts AI Benefits and Moderating Costs Lockheed Martin’s Record $292 Billion Backlog Comes With a Delivery Test Palantir’s Next Big Test Isn’t a Partnership—It’s the Numbers Kinder Morgan’s $4.7 Billion Pipeline Bet Could Be Bigger Than Its Earnings Beat

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