Mark Zuckerberg Keeps Control as Meta Adds Class C Stock — Analyst Sees ‘More Capex Coming’ for AI

Meta Platforms Inc. (NASDAQ:META) will give shareholders a new class of non-voting stock in January, letting CEO Mark Zuckerberg keep control while the company gains a new way to raise money to fund its artificial intelligence buildout.

How Meta’s Class C Shares Work

Meta’s board declared a dividend of one share of Class C common stock for each outstanding share of Class A and Class B common stock, as part of a “recapitalization” that takes effect Jan. 19, 2027

The Class C shares carry no voting rights, Meta said in a filing with the U.S. Securities and Exchange Commission.

Shareholders won’t vote on the change, since entities tied to Zuckerberg and his wife, Priscilla Chan, that hold 56.1% of Meta’s voting power approved it on Tuesday.

Meta said the shares let it raise capital, pay employees and fund acquisitions without diluting voting power, and that it expects to sell Class C stock from time to time.

Market Watchers Weigh in

Helene Meisler, technical analyst at TheStreet, said on X that she applauds the split but that 2-for-1 is “paltry for a $700 stock.”

She added that an 8-for-1 ratio would have been better.

I applaud Zuck for his stock split. But 2:1 is paltry for a $700 stock. 8/1 would have been better.

— Helene Meisler (@Chartfest1) October 21, 2026

Nicholas Mugalli, CEO and principal of World Trade Securities, saw the plan for “a non-voting currency to fund AI, acquisitions and engineer pay” as a sign of “more capex coming,” with 2026 capex already guided at $135 billion to $145 billion.

If you’re a $META shareholder, here’s how this works now:

Same as $GOOGL in 2014, every shareholder gets one new non-voting Class C share for each share they own.

Same total value, split into two…one keeps the vote and the new one doesn't. It works like a 2-for-1 split,… https://t.co/lDvdcUHeI6 pic.twitter.com/C0yCvCuja3

— Nicholas Mugalli (@RealNickMugalli) October 21, 2026

An equity investor Sandeep Anand said that “shareholders absorb 100% of the economic dilution of future issuance; Zuckerberg absorbs none of the control dilution.”

$META Preparing for funds raising in 2027, through dilution:

Meta's board approved a new non-voting Class C, issued as a one-time stock dividend: one Class C share for every Class A and Class B share you own, debuting January 19, 2027.

That step is economically neutral — same…

— Sandeep Anand (@SanCompounding) October 21, 2026

Alphabet Inc. took a similar route in 2014, splitting its stock 2-for-1 to create non-voting shares. Nvidia Corp., Apple Inc. and Amazon.com, Inc. have also split in recent years.

Meta Beats Estimates on Revenue and Earnings

For the third quarter, Meta posted revenue of $64.6 billion, beating analyst estimates of $63.37 billion, according to Benzinga Pro. Adjusted earnings were $7.40 per share, beating estimates of $5.74.

Meta expects fourth-quarter revenue of $73 billion to $76 billion versus estimates of $73.74 billion.

Price Action: On Wednesday, shares closed 0.47% higher at $697.52 and rose 2.17% to $712.65 in extended trading on the results announcement that came in after the bell.

Benzinga Edge rankings indicate Meta’s stock has a Momentum score in the 59th percentile and a Growth score in the 74th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo Courtesy: Harmony Video Production on Shutterstock.com