Meta stock tumbles on report of potential equity raise

Investing.com -- Meta Platforms (NASDAQ: META) shares fell 7% on Friday after the Financial Times reported the company is considering a major equity raise to fund its artificial intelligence infrastructure.

The Facebook parent is exploring the possibility of selling tens of billions of dollars in new stock to finance its AI ambitions, according to the report. The potential capital raise would support CEO Mark Zuckerberg’s goal of delivering "personal superintelligence" across Meta’s platforms, including Facebook, WhatsApp, Instagram, and wearable devices.

Meta’s AI-related capital expenditures are expected to reach $145 billion this year and increase further in 2027. The company’s discussions about an equity offering intensified after Alphabet successfully launched a record $85 billion share deal, capitalizing on strong investor demand.

Finance Chief Susan Li and President Dina Powell McCormick are leading the discussions, according to the report. However, the plans remain in early stages, with no banks hired yet and Meta keeping all financing options open.

The decline in Meta shares came amid broader pressure on the Nasdaq, with losses accelerating throughout the trading session. The potential stock offering would represent one of the largest equity raises in recent years as technology companies race to fund expensive AI infrastructure and data centers.

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