Meta Platforms Inc. is considering raising equity after Alphabet Inc.’s successful $85 billion sale, according to the Financial Times. Meta shares fell on the report.
Like Google’s parent, the social media company needs the money to fund its massive investments in infrastructure for artificial intelligence. Meta hasn’t yet hired banks and may not ultimately issue new stock, the FT reported, citing three people familiar with the discussions.
Meta shares slipped as much as 7% on the report, to $582.91. A spokesperson for the company described the report as “pure speculation.”
“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 spokesperson said. Meta recently boosted full-year capital expenditures to as much as $145 billion — an increase driven in part by rising component prices.
Google’s offering was multiple times oversubscribed, Bloomberg has reported. Alphabet’s offering of Class A shares and Class C Capital Stock raised a total of $18 billion, up from a target of $15 billion.
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