BUZZ-Meta shares rise after launching a 35 billion dollar stock offering for artificial intelligence investment

October 26 - ** Meta Platforms (META.O), the parent company of Facebook, saw its shares rise 2.3% in pre-market trading to $657.50, as the company seeks to raise funds for its costly AI expansion plan.

** META (link) launched a simultaneous public offering, including $22.5 billion of common stock and $12.5 billion of 3-year mandatory convertible preferred stock.

** META stated that chipmakers Nvidia NVDA.O, AMD AMD.O, and Broadcom AVGO.O have agreed to subscribe for up to $5 billion worth of shares as "cornerstone investors" in this stock offering.

** META said this fundraising aims to expand the infrastructure and computing capacity needed to support artificial intelligence development.

** The social media company also said it plans to launch a separate at-the-market (ATM) stock sale of up to $60 billion after its new non-voting Class C shares begin trading, expected in the first quarter of 2027.

** Morgan Stanley and Goldman Sachs are the joint lead underwriters for the offering.

** On Thursday, META shares fell 7%, as its new stock offering overshadowed (link) stronger-than-expected third-quarter revenue and a robust fourth-quarter outlook.

** As of Friday's close, the stock had fallen 2.7% so far this year, underperforming the Nasdaq index .IXIC, which is up 11.7%.

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