Meta stock slides on report of massive AI fundraising plan

Meta Platforms shares dropped more than 5% on Friday after a report suggested the company could potentially raise tens of billions of dollars through a stock offering to finance its artificial intelligence expansion, News.Az reports, citing CNBC.

According to the Financial Times, the social media company is considering a possible equity sale as it ramps up investment in AI infrastructure.

The report noted that Meta has not hired banks for any such offering and may ultimately decide not to issue new stock.

The speculation came shortly after rival Alphabet Inc. announced plans to raise $85 billion through equity sales, up from a previous target of $80 billion, as part of its aggressive investment strategy in artificial intelligence.

A Meta spokesperson dismissed the report, calling it “pure speculation,” while reaffirming the company’s commitment to AI development.

“We’ve been clear that huge opportunities lie ahead in AI, and we’ll continue focusing on raising capital in the most flexible ways to support that,” the spokesperson said.

Like other major technology firms, Meta and Alphabet are investing heavily in capital expenditures as they race to build AI infrastructure to meet growing demand.

In April, Meta increased its 2026 capital expenditure forecast to as much as $145 billion, up from a prior estimate of $135 billion. Alphabet also raised its capex outlook that month by $5 billion, bringing it to $190 billion.

Over the past year, Wall Street has viewed the two companies differently amid their AI spending strategies. Alphabet has benefited from strong performance in its cloud business, helping justify its investment surge. Its stock has risen more than 115% over the past 12 months, making it the top performer among megacap tech firms, while Meta’s shares have fallen about 13%, making it the weakest performer in the group.

News.Az 

By Nijat Babayev