Meta Platforms’ $97.5 billion stock offering: Can META avoid deeper losses?

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Meta drops 0.63% to $616 today

Highlights

Meta completed a $97.5 billion Class C stock offering in January 2027, expanding acquisition funding and CEO Zuckerberg's control over the company.
The company generated $64.6 billion in Q3 2026 revenue and $7.40 EPS excluding litigation, but operating income dropped 37 percent amid record AI investment and higher legal expenses.
Shares of Meta trade below key moving averages with strong sell signals from momentum indicators, a 62 percent probability of downside, and an expected price range of $592.2 to $640.24 over the next several trading days.

Equity offering and AI spending spur supply risk, cash outflow

Meta Platforms’ largest-ever $97.5 billion equity offering, completed through issuance of new Class C stock in January 2027 and detailed by Manilatimes, significantly boosts its funding for acquisitions and talent retention while reinforcing CEO Mark Zuckerberg’s control, potentially exerting ongoing supply pressure on shares. The company also recorded negative free cash flow in the third quarter of 2026, its first since 2012, as outlined by Fool, reflecting elevated artificial intelligence investments and a halt in stock buybacks that constrained liquidity. Meanwhile, Seeking Alpha noted that despite exceeding Q3 2026 earnings expectations with $64.6 billion in revenue and $7.40 EPS (excluding litigation), Meta’s operating income fell 37%, weighed down by record AI infrastructure spending and higher legal expenses. Additionally, Investing.com reported that Meta postponed the implementation of new commercial terms for publishers and digital advertisers indefinitely, signaling continued regulatory and partner uncertainty.

Sustained seller control as technical signals turn bearish

Technically, META is trading below the MA-20 at $622.11, MA-50 at $649.24, and MA-200 at $632.11. Immediate resistance is identified at the Ichimoku Kijun level of $628.35. MACD and ADX deliver strong sell signals, while RSI stands at 34.11 (Sell), and Stochastic RSI is in overbought territory. CCI signals sell conditions, and Bull/Bear Power is oversold, pointing to strong seller dominance. However, oscillators display some divergence, as intraday price action remains relatively resilient despite the prevailing downward trend.

Downside scenario prevails as volatility bands define outlook

Over the next 2 to 3 trading days, META is likely to consolidate within a volatility band between $592.2 and $640.24. The downside risk continues to outweigh upside potential, with a 62% probability of further declines versus a 38% likelihood of upward movement. If resistance at $628.35 is reclaimed and held, a bullish scenario may develop; if support at $592.2 fails, further downside acceleration is expected.

Viktoras Karapetjanc, expert at Traders Union, sees Meta’s fundamentals strengthened by the landmark $97.5 billion equity offering and robust top-line growth, despite current liquidity and profitability pressures from heavy AI spending. He believes mid-term sentiment remains constructive given the company’s macro-scale investments and management’s consistent control, even as regulatory clouds and technical weakness persist. The analyst expects a consolidation phase between $592.2 and $640.24, with downside risks for now but potential upside if resistance is reclaimed. "Momentum could swiftly shift if Meta regains $628.35, as strategic investment and leadership stability continue to support bullish conviction," says Karapetjanc.

Earlier, analysts noted that Meta’s rising leverage, negative free cash flow, and large-scale equity and debt financing for AI expansion underscore both its strategic ambition and increasing financial risks. The current technical setup and liquidity shift highlight the need to closely monitor $592.2 as critical support, with failure at this level likely to trigger renewed downward momentum.

Source of Data: META Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.