Meta Platforms stock fell 1.64% to $620.19 on October 27, 2026, closing at a 20-day low as volume surged, amid investor concern over rising capital expenditure and a $95 billion financing plan to fund its artificial intelligence buildout, according to reporting from JournalArta and BigGo Finance.
Meta's $95 Billion AI Financing Plan
Meta is pursuing a massive financing plan totaling up to $95 billion to support its AI infrastructure and superintelligence
initiatives, as reported by BigGo Finance. The plan includes $22.5 billion in Class A common stock, approximately $12.5 billion in mandatory convertible preferred stock, and a potential $60 billion through an at-the-market equity program starting in the first quarter of 2027. This announcement, combined with a $9.89 billion legal charge, contributed to the stock’s decline, despite Q3 revenue of $64.6 billion – a 26% year-over-year increase – that exceeded expectations, according to Beinsure.
Capex and Cash Flow Concerns
The significant investment in AI is straining Meta’s cash flow. Tech Insider reported Q3 capital expenditure reached $34.91 billion, exceeding operating cash flow of $32 billion. Free cash flow turned negative. Bank of America Securities estimates capital expenditure will reach $210 billion in 2027, with free cash flow at negative $32 billion, per BigGo Finance.
Investor Reaction and Analyst Views
The financing announcement sparked mixed reactions. MarketBeat reported shares fell 1.5% on October 30, 2026. While analysts largely maintain “Buy” ratings, concerns about equity dilution are mounting. Citi, Barclays, and RBC Capital Markets have raised price targets and acknowledge the risks, as reported by BigGo Finance.
What Meta Says About AI Efficiency
Despite the increased spending, Meta executives are optimistic about the future. According to Tech Insider, Mark Zuckerberg stated that Muse is very compute-intensive to run
and expects to improve its cost efficiency in the next year.
Looking Ahead: Q4 Guidance and Beyond
Meta’s Q4 revenue guidance is between $73 billion and $76 billion, according to Yahoo Finance and Global Data Center Hub. Investors will be closely watching the company’s ability to monetize its AI investments and improve cost efficiency in the coming quarters. BigGo Finance noted that the $60 billion at-the-market program could launch as early as Q1 2027.