Meta Is Reportedly Weighing a Multibillion-Dollar Stock Sale to Fund Its AI Build-Out. Here's What It Could Mean for Shareholders.
After leaning on debt to fund its artificial intelligence (AI) ambitions, the social media giant may now be turning to its own shareholders.
Meta Is Reportedly Weighing a Multibillion-Dollar Stock Sale to Fund Its AI Build-Out. Here's What It Could Mean for Shareholders.
Overview
Meta Platforms (NASDAQ: META) may soon pose a new question to its shareholders. Shares of the social media giant fell roughly 6% on Friday, June 5, after a Financial Times report said the company is weighing a sale of new stock -- potentially tens of billions of dollars' worth -- to help fund its surging investment in artificial intelligence (AI).
Meta quickly called the report "pure speculation," noting that it hasn't hired banks and continues to explore flexible ways to raise money. So, this is a possibility, not a plan. But it's one worth taking seriously, arriving just days after rival Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) priced a roughly $85 billion equity raise to fund its own AI ambitions.
Details
The question for shareholders is less about whether Meta can fund its plans than about how it chooses to -- and selling new shares would be a very different lever than the ones it has used so far.
Source
Originally published at www.fool.com.
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