Parkev Tatevosian, CFA on $META (Oct 29, 2026)

As I mentioned to my followers during my live broadcast which covered Meta 's initial financial report , I expected the company to issue new shares. I expected that new shares would be sold due to the restructuring of the share classes ( Class A, Class C, etc.) .

I thought they were preparing themselves for a massive stock sale , and it happened faster than I expected, as they appear to be planning to sell nearly $100 billion worth of shares.

All of this, of course, is for investment in artificial intelligence data centers . So, let me explain what this means for investors, share my assessment of the fair value of Meta shares, and answer my own question: Do I still see it as a buying opportunity?

What should I do with my shares in MetaTrader? Am I interested in buying more? So, Meta is selling shares worth nearly $100 billion to fund artificial intelligence.

Meta has priced the first tranche of its $25 billion common stock at $625 per share, which is slightly below the current market price. As is typical, when companies make such large deals, they price them at a small discount to encourage some stock buyers to make bulk purchases, as Nvidia did .

According to Bloomberg, purchase requests exceeded five times the number of shares offered, meaning the IPO was virtually nonexistent. The number of people interested in buying was much greater than the number who were actually able to buy it.

Furthermore , another $12.5 billion was allocated to preferred shares that pay interest at 6.5% and convert to common shares in 2029. This offering also saw significant demand.

But the largest tranche, valued at $60 billion, has not yet been sold . This is the new class of non- voting shares that Meta plans to gradually sell starting next year.

Therefore, they will opportunistically sell this segment if they notice a significant rise in their stock price. They are likely to see this as an opportunity to sell more shares, and they will do so gradually, not all at once .

They do not want to increase selling pressure, which could lead to a drop in the share price.

The reason they need money is their large expenditure on artificial intelligence, which exceeds the strong cash flow the company generates. I mean, it's a very profitable company.

It generated nearly $33 billion in operating cash flow in the last quarter, while spending nearly $34 billion . That is, they spend much more , despite generating huge cash flows .

For many years, one of my biggest concerns about Big Tech companies has been how they invest these enormous cash flows. They were accumulating huge sums of money on their balance sheets , and they had no opportunities to reinvest it in their businesses. Therefore, I saw that this was undesirable.

Now the situation has been turned upside down , as they now have abundant investment opportunities, but they lack sufficient liquidity to invest in them. Therefore, they approach investors seeking the necessary capital to invest in these attractive opportunities.

They see these opportunities as very attractive, which prompts them to invest in them quickly.

In fact, Meta is not suffering from any financial distress, as it already has $83 billion in cash and short- term investments on its balance sheet . Therefore, based on its earnings in the last quarter and the past 12 months, it will not need any additional capital.

But it is taking this step proactively in anticipation of needing this capital. It's always easier to raise money when you don't need it than when you actually need it, isn't it?

Therefore, Meta Platforms is taking a proactive stance, turning to investors to raise capital now before its situation becomes more urgent regarding its urgent need for liquidity to invest in data centers beyond its current cash flows, while its balance sheet is already beginning to shrink in terms of cash balance.

This is anticipating future needs that may or may not be met . Currently, they are planning these huge investments, but that could change in six months, or twelve months, or eighteen months.

So far, demand for artificial intelligence and progress in this sector has exceeded expectations every three months. So, instead of the situation getting worse, it improves approximately every three months .

But this does not necessarily mean that the improvement will continue every three months. Therefore, they will deal with this gradually and continue as long as they see that the investments justify the cost of the capital required for them.

Therefore, I would like to remind everyone that I see this as one of the best opportunities in the market. In fact, I ranked Meta shares as the second best stock to buy . It is one of my biggest investments, and I have calculated its fair value at $942.

The current market price is $623. Therefore, I see great potential for Meta Platforms shares to rise over the next 12 to 18 months .