Meta Launches $95 Billion Equity Raise for AI Push; Goldman Reiterates Buy at $885 Target

Meta Platforms (META) has launched an equity financing program totaling nearly $95 billion, an unusually large raise for the U.S. market. Goldman Sachs reiterated its Buy rating and a 12-month price target of $885, citing core business strength and long-term AI growth even as the spending pressures cash flow and margins. The plan has two parts: an immediate ~$35 billion underwritten offering — about $22.5 billion in Class A common stock via forward sale agreements and roughly $12.5 billion in Series A depositary shares tied to new mandatory convertible preferred stock — and a ~$60 billion at-the-market program expected to begin as soon as the first quarter of 2027, after Class C shares start trading. Terms of the ATM portion remain undetermined. Nvidia (NVDA), AMD (AMD) and Broadcom (AVGO) have signaled intent to subscribe to up to about $5 billion of Class A shares combined. The deal also includes non-voting Class C stock, letting CEO Mark Zuckerberg preserve voting control while expanding equity. Goldman estimates Meta's capital expenditures will reach about $230 billion in fiscal 2027 and $250 billion in fiscal 2028. It projects free cash flow falling from about $46 billion in 2025 to roughly $6.37 billion in 2026 and negative $33.45 billion in 2027.