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Meta shares fell more than 5% amid reports that the company plans to raise tens of billions of dollars through a stock offering
- Exact amount to be raised was not disclosed and sources familiar with the matter said the plans are in early stages, Financial Times reported.
- Meta’s plans follow Alphabet’s blockbuster $85 billion stock offering announced this week.
- A Meta spokesperson said the share sales talk were “pure speculation” but said they will continue raising capital in the most flexible ways to support their AI ambitions.
- One of the sources said Meta had looked at Alphabet’s capital raising, which includes “mandatory convertible preferred issuance”- allowing it to raise capital immediately but defer stock issuance for years.
- Prior to this news, Meta shares were already down 2% alongside the overall market as Nonfarm Payrolls raised concerns of interest rate hikes.
https://www.ft.com/content/e6df645d-1709-4a77-b15d-aa43a0209efd