Meta Just Priced a Stock Sale at $625 a Share. I'd Consider Buying at the Same Price.

Key Points:

• Meta Platforms is raising approximately $37.5 billion through a $25 billion sale of 40 million Class A shares at $625 each and $12.5 billion from 250 million mandatory convertible preferred shares priced at $50 each.
• The common stock proceeds will be received by November 19, 2027, under forward sale agreements, while the preferred shares pay a 6.5% annual dividend and will convert to Meta shares in August 2029 based on stock price.
• The equity raise will increase Meta’s share count by about 2.3%, slightly diluting existing shareholders, but the stock’s price-to-earnings ratio is expected to remain under 19 times 2027 earnings despite this dilution.
• Meta has been spending heavily on capital expenditures, with $2.1 billion more spent than operational cash flow in Q3 2026, and expects $135-$145 billion in capital expenditures in 2026, funded partly by recent significant debt issuances totaling over $54 billion.
• Despite dilution and heavy spending, Meta’s advertising revenue rose 26% year-over-year to $63.1 billion in Q3 2026, driven by AI investments, and the company plans an additional $60 billion stock sale program, signaling confidence in its growth prospects at current share prices near $625.