Meta shares fell more than 5% on June 5 after a report said the company was considering a stock sale that could raise tens of billions of dollars for AI investments.

The company had not hired banks and might not proceed, the report said. A Meta spokesperson called it “pure speculation” and said Meta would keep looking at flexible ways to raise capital for AI.

Investors often react negatively to equity fundraising because issuing new shares can dilute existing shareholders by reducing their ownership stakes and potentially lowering earnings per share.

The discussions come as large tech companies increase spending on AI infrastructure. In April, Meta raised its 2026 capital expenditure forecast to as much as US$145 billion from a previous forecast of up to US$135 billion.

Alphabet said that month it was raising the top end of its own forecast by US$5 billion to US$190 billion.

Meta has also used other financing tools. It had nearly US$41 billion in cash, cash equivalents, and marketable securities at the end of 2022.

In 2023, it increased its share repurchase authorization by US$40 billion. In 2025, it launched a bond sale that drew about US$125 billion in orders.

🔗 Source: CNBC

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