Meta Prices a $25 Billion Stock Sale at $625 a Share, Plus $12.5 Billion of Convertible Preferred

Meta Platforms sold $25 billion of new Class A shares at $625 each and $12.5 billion of mandatory convertible preferred stock, pricing both offerings early on Tuesday, October 27, 2026. Meta raised the common stock sale from the $22.5 billion it launched on Monday after orders reached about five times the shares available, Quartz reported. Nvidia committed $3 billion of the money and AMD $1 billion. The company also plans to sell up to $60 billion of new non-voting Class C shares once they begin trading, which it expects in the first quarter of 2027, CNBC reported.

The stock held close to the offering price on Tuesday. When the report of five-times demand reached the MoveSurge news feed at 10:40:18 ET, Meta traded at $624.30. It rose 0.10% to $624.95 in the next minute and was 0.20% higher, at $625.54, fifteen minutes later. It closed at $620.19, down 1.64%. The $625 price was 0.88% below Monday's close of $630.56 and 4.5% below the $654.19 the stock traded at before the open on Monday, when the plan first reached the MoveSurge news feed.

Why Meta is selling stock

Meta is raising the money to pay for data centers and AI chips, CNBC and Reuters reported. When it reported third-quarter results on October 21 it set out a plan for non-voting Class C shares that would let it issue stock without diluting voting control (see our Meta Q3 2026 earnings report). Meta had been repurchasing its own shares for years before this sale.

How the two securities work

The common stock is sold through forward sale agreements with affiliates of Morgan Stanley and Goldman Sachs. The banks borrow 40 million Meta shares and place them with investors now. Meta issues new shares to the banks and collects the money later, on or before November 19, 2027. At the initial forward price of about $622.92 a share, Meta expects about $24.9 billion of net proceeds when the agreements settle. The structure fixes the price today while letting Meta issue the shares, and take the dilution, as it needs the cash.

The preferred offering is 250 million depositary shares at $50 each, each a fractional interest in Meta's 6.50% Series A Mandatory Convertible Preferred Stock. Holders receive a 6.50% dividend until the preferred converts into Class A common stock on or about August 15, 2029. The conversion is mandatory, so the money counts as future equity rather than debt that must be repaid. Meta expects about $12.5 billion of net proceeds, which it will use for general corporate purposes, and both offerings are expected to close on October 29.

Nvidia and AMD put in $4 billion

Nvidia said it will invest $3 billion in the offering as the two companies expand their work on training and running Meta's Muse AI models. AMD said it will invest $1 billion and that its Helios rack systems are now being tested at Meta. Both chipmakers supply processors for Meta's data centers, so each is putting money into one of its largest customers.