Meta stock closed at $630.56 on October 26, 2026, down 1.88%, as the company priced depositary shares and a forward sale of Class A shares. The financing announcements followed Meta Platforms’ third-quarter earnings release five days earlier.
Key Takeaways
- Meta priced 250 million depositary shares at $50 each, with the offering expected to close October 29.
- A forward agreement covers 40 million Class A shares at $625 each; Meta expects no initial proceeds.
- The company forecast fourth-quarter revenue of $73 billion to $76 billion.
Meta stock and the financing terms
The shares fell $12.06 from their October 23 close of $642.62. Monday’s closing price was $5.56 above the $625 price set for the Class A forward sale. The available information does not establish what caused the day’s decline.
Meta expects approximately $12.5 billion in net proceeds from the depositary offering. It has applied to list the shares under the ticker METAM.
The forward agreements name Morgan Stanley Capital Services and Goldman Sachs as purchasers. Meta expects about $24.9 billion before expenses on or before November 19, 2027, rather than proceeds when the agreements are initiated.
| Item | Details |
|---|---|
| Depositary offering | 250 million shares priced at $50 each; close expected October 29, 2026. |
| Class A forward | 40 million shares at $625 each; proceeds expected on or before November 19, 2027. |
| Class C sales | Approximately $60 billion contemplated; no sales agreement signed. |
Earnings and spending outlook
Meta reported third-quarter revenue of $64.601 billion, up 26%, including $63.061 billion in advertising revenue. Ad impressions rose 10%, while the average price per ad increased 14%.
Earnings per share were $3.83, or $7.40 excluding a $9.89 billion charge. Free cash flow was negative $2.12 billion. Meta guided for 2026 capital expenditure of $135 billion to $145 billion.
The first trading session after the October 21 earnings release ended with Meta shares at $648.85 on October 22, down from $697.52 before the release.
Class C sales remain unsigned
Meta has described plans for approximately $60 billion of at-the-market sales of non-voting Class C stock, but no agreement had been signed. The timing and size of any sales are not assured.
The amended certificate creating the Class C stock is expected to take effect on January 19, 2027. The company plans a dividend of one Class C share for each Class A or Class B share after that date.
Nvidia, AMD and Broadcom indicated non-binding interest in buying up to $5 billion in aggregate; they may buy none.
Next milestone
The next confirmed milestone is the depositary offering’s expected close on October 29, 2026.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
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