A $95 Billion Reason Why META Stock Is in Focus Today

Meta Platforms (META) shares opened lower on Oct. 26 after the Facebook parent announced plans to raise up to $95 billion to finance its artificial intelligence (AI) expansion. The proposed fundraising includes an initial $35 billion stock offering, while the hyperscaler has a larger share-sale program planned for later.

The announcement arrives as Meta stock is already struggling to regain investor interest, currently hovering around the same price at which it started 2026. 

Why Meta Stock Tumbled Following the Announcement

On top of the initial $35 billion raise, Meta plans a separate program to sell up to $60 billion of its nonvoting Class C shares once they begin trading, likely in early 2027. That larger offering’s timing and terms remain undisclosed for now.

For investors, the concern is straightforward: issuing additional stock would spread future earnings across a larger ownership base. 

Meanwhile, the giant’s $140 billion capital expenditure forecast and -$2.12 billion of free cash flow in the latest reported quarter already highlight the pressure from its infrastructure expansion. 

Sure, the fundraising offers financial flexibility, but shareholders must weigh that benefit against dilution and uncertainty over when the spending will deliver sufficient returns.  

Wedbush Sees Massive Upside in META Shares From Here

Despite the aforementioned concerns, famed analyst Dan Ives maintained an “Outperform” rating on Meta shares this morning, with a bullish $920 price target. That implies potential upside of nearly 40% from current levels. The stock offering could unlock what META currently lacks the infrastructure to serve.

Ives previously highlighted that Muse’s growth was restricted by compute availability rather than customer interest, with monetization opportunities spanning subscription, commerce, and business tools. 

From that perspective, the financing could help remove a growth bottleneck. Meta’s RSI currently sits in the mid-30s, indicating the stock is approaching oversold levels that often trigger a relief rally. 

Wall Street’s Consensus View on Meta Platforms

Other Wall Street analysts also agree with Ives’s bullish stance on Meta Platforms. 

The consensus rating on META stock sits at “Strong Buy,” with the mean price target of about $856 indicating potential upside of about 30% from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.