Stock Market Today, Oct. 27: Meta Raises Largest-Ever Equity Offering to Nearly $98 Billion to Fund AI Infrastructure Bet

On October 27, Meta Platforms announced it was raising nearly $98 billion in its largest-ever equity offering to fund an ambitious AI infrastructure initiative. The social media giant's stock closed at $620.19, down 1.64%, following the news. Trading volume surged to 50.4 million shares, 148% above the three-month average of 20.3 million shares. This comes as investors grapple with Meta's increased AI spending and financing strategies while monitoring the potential returns from its AI investments.

Founded in 2012, Meta has grown an astounding 1,522% since going public. The S&P 500 closed up 0.60% at 7,723, and the Nasdaq Composite rose 1.18% to 26,478. Among its peers, Alphabet saw a 1.19% increase to $320.58, while Snap declined 4.10% to $6.08 as investors compared ad-demand resilience and AI spending pressure among sector rivals.

Meta has set its sights on a massive AI infrastructure buildout, estimating costs between $135 billion and $145 billion by 2026, up from $72.2 billion in 2025. To secure the necessary funding, Meta is planning record equity offerings, initially targeting $95 billion. However, the company's Class A offering was five times oversubscribed, prompting today's decision to increase the offering by $2.5 billion to a total of $97.5 billion.

This includes $25 billion in Class A common stock, $12.5 billion in mandatory convertible preferred shares, and $60 billion through a Class C non-voting share At-The-Market (ATM) program, scheduled for early 2027.

Tech giants Nvidia and AMD have committed to investing $4 billion in Meta as part of their deepening AI partnerships. This support offers some relief to investors concerned about the company's financing plans. Despite the strong performance in its latest quarter, with 26% revenue growth to $64.6 billion and guidance above expectations, investors remain focused on the rapid pace of capital expenditures.