Meta shares recover after $35B AI funding announcement

Meta Platforms shares fell nearly 2% in early trading Monday before recovering to gain about 0.2% by mid-morning, following the company's announcement of a $35 billion stock issuance to fund its artificial intelligence ambitions amid investor concerns over spending plans. The capital raise comes after Meta reported strong third-quarter results with revenue up 26% year-over-year to $64.6 billion, though the company also raised its capital expenditure forecast to $135-145 billion and reported negative free cash flow of $2.1 billion. Meta also outlined plans for a separate at-the-market offering program of up to $60 billion once its new Class C shares begin trading in early 2027. Analysts at Piper Sandler and Bank of America view the issuance positively, saying it reduces dilution fears and signals strong AI demand. Piper Sandler maintained an Overweight rating with a $850 price target, while Bank of America raised its target to $845.