Meta shares recover after $35 billion AI stock offering

Meta Platforms shares fell nearly 2% in early trading Monday before recovering to a slight gain, following the company's announcement of a $35 billion stock offering to fund its artificial intelligence ambitions amid investor concerns over spending plans. The capital raise comes days after Meta reported strong third-quarter results, with revenue up 26% year-over-year to $64.6 billion and adjusted earnings per share of $7.40. The company also raised its capital expenditure forecast to between $135 billion and $145 billion and reported negative free cash flow of about $2.1 billion for the quarter. Meta also plans a separate at-the-market offering of up to $60 billion when its new non-voting Class C shares begin trading in the first quarter of 2027. Piper Sandler maintained an Overweight rating with a $850 price target, viewing the offering as less dilutive than feared, while Bank of America raised its price target to $845.