Stock Market Today, Oct. 27: Meta Raises Largest-Ever Equity Offering to Nearly $98 Billion to Fund AI Infrastructure Bet
Meta Platforms (NASDAQ:META), a global social networking and AI-driven digital advertising platform, closed at $620.19, down 1.64%. Investors are weighing its heavier AI spending and financing plans while watching AI infrastructure funding and returns.
Trading volume reached 50.4 million shares, coming in about 148% above its three-month average of 20.3 million shares. Meta Platforms IPO'd in 2012 and has grown 1,522% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) closed up 0.60% at 7,723, and the Nasdaq Composite (NASDAQINDEX:^IXIC) rose 1.18% to 26,478. Among interactive media and social networking platforms, Alphabet closed at $320.58, up 1.19%, while Snap closed at $6.08, down 4.10%, as investors compared ad-demand resilience and AI spending pressure across sector rivals.
What this means for investors
On Tuesday, Meta Platforms drew attention to its financing plans for funding its massive artificial intelligence infrastructure buildout, which is projected to cost between $135 billion and $145 billion in 2026 compared to $72.2 billion in 2025. To acquire the necessary funding, the social media giant is planning record equity offerings.
The company originally targeted raising $95 billion, but investment banks reported its Class A offering was heavily oversubscribed by fivefold. As a result, today, Meta upsized its offering by $2.5 billion for a total of $97.5 billion. This consists of $25 billion in Class A common stock, $12.5 billion in mandatory convertible preferred shares, and the remaining $60 billion through a Class C non-voting share At-The-Market (ATM) program scheduled for early 2027.
Semiconductor chip giants Nvidia and AMD said they would invest in Meta as part of deepening their AI partnerships. That support, totaling $4 billion, softened some financing concerns, even as investors watched how quickly the company can convert spending into returns.
Meta's latest financial results and outlook stayed in focus after it delivered 26% third-quarter revenue growth to $64.6 billion and guidance above expectations. The quarter showed strength, but investors remained fixated on rising capital expenditures.
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Robert Izquierdo has positions in Advanced Micro Devices, Alphabet, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
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