Why is Meta Platforms stock sliding today?

Meta Platforms stock slipped 1.2% in morning trading as markets absorbed the full scope of the company’s historic equity raise, with shares trading at $623.10 after opening at $627.01.

The trigger is a financing plan totaling up to approximately $97.5 billion, which includes a $25 billion Class A common stock offering priced at $625 per share — below the prior session’s close — alongside $12.5 billion in mandatory convertible preferred depositary shares and a planned $60 billion at-the-market program tied to a new non-voting Class C share class set to begin trading in early 2027.

The dilution concern is the central pressure point for investors. Analysts estimate that the full execution of the plan could reduce existing shareholders’ ownership by roughly 5–6%, and the offering price of $625 anchors near-term technical resistance.

Adding to the overhang, Meta’s stock had already fallen sharply after its Q3 2026 earnings report, when quarterly capital expenditures of $34.91 billion pushed free cash flow into negative territory for the first time in over a decade.

On the analyst front, Mizuho, Canaccord Genuity, Wells Fargo, Citizens, and Wedbush’s Dan Ives all reiterated positive ratings on October 27, with price targets ranging from $885 to $995, arguing the dilution is manageable relative to Meta’s growth trajectory. Nvidia also announced a $3 billion commitment to the equity offering as part of an expanded partnership on Meta’s Muse AI models, providing a partial confidence signal.

The broader market is providing little cover for Meta today. The Nasdaq Composite is modestly higher at +0.3%, the S&P 500 is nearly flat at +0.1%, and the Dow Jones is slightly negative at -0.2%, meaning Meta’s decline is distinctly company-specific rather than driven by macro or sector-wide forces.

The stock is also trading below its 200-day moving average — a bearish technical signal that has added to selling pressure since the prior session.

Taken together, the combination of a historically large share issuance priced below market, a post-earnings hangover tied to surging AI capital expenditures, and a stock already in a downtrend from its 52-week high of $779.82 has created a difficult near-term environment for Meta shares, even as the long-term AI investment thesis remains intact in the eyes of most Wall Street analysts.