Meta launches $95 billion stock offering to fund AI investments

2 min read
Meta launches $95 billion stock offering to fund AI investments
PrimeXBT Editorial Team
Reviewed by PrimeXBT

Topics in article

Meta said Monday it plans to raise a total of $95 billion to support its investments in AI infrastructure and superintelligence. It will start with $35 billion in underwritten public equity offerings, then add $60 billion through an at-the-market program. The stock was up 1.6% in premarket trading.

Meta plans to raise a total of $95 billion to support its investments in AI infrastructure and superintelligence, the company said Monday. The tech giant will initially raise $35 billion in underwritten public equity offerings, before later raising an additional $60 billion with an at-the-market program.

How the $95 billion breaks down

In a Monday filing, Meta said it launched about $35 billion in equity offerings and plans to secure up to $60 billion from an at-the-market program of new nonvoting Class C shares. The $35 billion includes $22.5 billion in Class A stock and roughly $12.5 billion in mandatory-convertible preferred shares.

Meta said the planned investments will support "emerging AI opportunities", including its family of apps, its AI agent Muse and its data center business. The company plans to balance funding through a mix of operating cash flow, investment-grade debt, partnerships and equity capital.

Offering follows a higher capex forecast

Meta's stock was up 1.6% in premarket trading after the announcement.

Last week, Meta posted third-quarter results showing revenue jumped 26% year-on-year: $64.60 billion versus the $63.37 billion analysts expected. However, investors focused more on the company's negative free cash flow and its higher full-year capital expenditure forecast.

Meta now expects full-year capex to range from $135 billion to $145 billion, raising the bottom of the range from $130 billion. That sent shares lower on the day.

Sources: CNBC, Business Insider

Trading involves risk.

Most traded markets

XAU / USD
+0.6% 4,019.31
CRUDE
-2.26% 102.694
BTC / USD
-0.11% 80,311.1
EUR / USD
-0.11% 1.11891
USTEC
+0.4% 29,120.35
NFLX
-0.64% 65.29
View all markets

Author

PrimeXBT
Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...
Read author’s articles
Alert Triangle Risk Disclaimer
Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.

Today in markets

Browse Stock News

Register Now

Trading involves risk

Get started in minutes

Our clients love how fast and simple our sign-up is. It takes just a few minutes to get started!

Get Started Get Started
Get started in minutes

Need Help?

Risk Warning:
Trading in leveraged products carries a high level of risk and may not be suitable for all investors.