Key Highlights

● Meta closed at $648.85 on October 22, its worst day since July.

● Meta plans a one-time dividend of one non-voting Class C share per existing share.

● The charter amendment takes effect January 19, 2027.

● Meta had lost about $108 billion in market value by midday.

Meta Platforms (NASDAQ:META) shares tumbled on Thursday, October 22, 2026, closing at $648.85 in their worst day since July, and one of the most discussed pieces of its quarterly report was not a revenue figure but a change to its share structure. The plan to create a new non-voting Class C share kept Meta at the center of conversation on the Nasdaq-100 as the index sank.

What Meta actually announced

Many media reports described the move as a "2-for-1 stock split." Meta's filing with the Securities and Exchange Commission describes something more specific.

According to the 8-K, Meta plans a one-time stock dividend of one non-voting Class C share for every Class A and Class B share outstanding. The dividend depends on an amendment to the company's charter, effective January 19, 2027. After the dividend is paid, the price of the Class A shares is expected to reflect a two-for-one split.

In practical terms, existing holders would end up with twice as many shares, half of them carrying no votes. Meta already has a dual-class structure, with Class B shares carrying extra voting power. A non-voting class would add a third tier, a structure similar to the one Alphabet (NASDAQ:GOOGL) uses for its Class C stock.

Why it got people talking

The timing gave the plan extra weight. Meta's results showed record revenue of $64.6 billion, but also a 2026 capital spending range of $135 billion to $145 billion and free cash flow of negative $2.12 billion, which marked its first cash outflow in more than a decade.

Some commentators said the new share class was seen as a way to help fund AI spending. Non-voting stock can, in principle, be issued without diluting voting control. The cost of insuring Meta's debt against default hit a record, according to market data.

Meta has not said it plans to sell shares. Meta's chief financial officer said: "We don't have any specific financing plans to announce at this time." She also said Meta is "quite early in developing our budget and capacity plans for next year."

From after-hours gain to steep loss

Meta's shares had initially risen in after-hours trading on Wednesday, then reversed. By midday Thursday, the company had lost about $108 billion in market value.

Several analysts stayed positive. JPMorgan kept an Overweight rating and raised its price target to $940 from $920. BofA reiterated Buy with a target of $845, up from $810. A UBS analyst wrote: "In our view, Meta is entering a capex harvest cycle."

The wider market took its cue from Meta. The Nasdaq Composite fell 694.00 points to 26,008.86, its steepest drop since June 5, while the Nasdaq-100 lost about $1.32 trillion in market value. The quarter also included a legal charge of about $10 billion tied to a settlement, according to reports.

Mark Zuckerberg struck an upbeat tone in the results release: "Our investments are paying off, the core business is strong, and we're seeing velocity across the board."

Meta's Class C Plan Awaits Its Charter Amendment

The charter amendment and the January 19, 2027 effective date are the next formal milestones for the Class C plan. Investors will watch for any filings that clarify how Meta intends to use the new class. The Federal Reserve's October 28 decision and results from Microsoft (NASDAQ:MSFT) and Alphabet the same day will test whether worries about AI spending spread further.