Meta shares dropped more than 5% on Friday following a Financial Times report that the company could potentially raise tens of billions of dollars through a stock offering to fund artificial intelligence investments. The social media company is considering the potential stock sale after rival Alphabet announced plans this week to raise $85 billion from selling equity, increased from $80 billion. The report comes as tech giants pour record sums into capital expenditures to build AI infrastructure, with Meta raising its 2026 capex guidance to as high as $145 billion in April.
Meta Spokesperson Responds to Stock Offering Report
A Meta spokesperson called the Financial Times report "pure speculation." The spokesperson stated in an email: "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 Financial Times noted that Meta has not hired banks and may not issue new stock.
Meta and Alphabet Increase AI Capital Expenditure Guidance
In April, Meta raised its 2026 capex guidance to as high as $145 billion from a previous forecast of up to $135 billion. Alphabet announced that same month it was hiking the top end of its capex guidance by $5 billion to $190 billion. Both companies are investing in AI infrastructure to meet demand.
Stock Performance Diverges Between Meta and Alphabet
Alphabet's stock is up more than 115% in the last 12 months, topping all of its megacap peers. Meta's stock is down 13% over the same period, the worst performer in the group. Alphabet's stock is down for a fourth straight week as investors worry about excessive AI spending. Wall Street has treated the two companies differently, largely because Alphabet has a prospering cloud business that helps justify its spending.
FAQ
What did Meta's stock do on Friday following the Financial Times report?
Meta shares dropped more than 5% on Friday after the Financial Times reported that the company could potentially raise tens of billions of dollars in a stock offering to fund its artificial intelligence investments.
How much did Meta raise its 2026 capital expenditure guidance in April?
In April, Meta raised its 2026 capex guidance to as high as $145 billion from a previous forecast of up to $135 billion to support AI infrastructure investments.
How has Meta's stock performed compared to Alphabet over the last 12 months?
Meta's stock is down 13% in the last 12 months, while Alphabet's stock is up more than 115% over the same period, making Meta the worst performer and Alphabet the top performer among megacap peers.
