Meta Platforms lost more than $90 billion in market value after a Financial Times report said the company is considering a large equity offering to fund its artificial intelligence infrastructure. Shares fell 5.5% in the session.
The report that moved the market
The Financial Times, citing unnamed sources, reported that Meta is exploring a significant equity raise. The proceeds would go toward building out AI infrastructure, including data centers and computing hardware. Meta has not publicly commented on the report.
Why the sell-off
Equity offerings dilute existing shareholders, meaning each share represents a smaller piece of the company. For a firm the size of Meta, a large issuance could weigh on earnings per share. The $90 billion valuation wipeout reflects investor unease about the scale of spending and the potential impact on returns.
If Meta proceeds with an offering, it would need to disclose details in a regulatory filing. Investors are waiting for any confirmation or denial from the company. The Financial Times report has not been independently verified.
