Overview
- The stock dropped about 6% after a Financial Times report said Meta was weighing a stock sale potentially worth tens of billions, with the market treating the report as a signal of financing stress.
- Meta called the report "pure speculation," said it has not engaged banks for a share sale, and described itself as exploring flexible capital options rather than having made any decision.
- Meta raised 2026 capital spending guidance to $125 billion–$145 billion, roughly double 2025 levels, and first‑quarter capex of about $20 billion exceeded free cash flow of $12.4 billion.
- To date Meta has leaned on borrowing and paused buybacks, with long‑term debt near $59 billion and a $25 billion senior notes offering completed in May to help fund the build.
- The company paired the spending ramp with a $115 million U.S. workforce program for data‑center technicians, while losses at Reality Labs and setbacks in some AI launches add pressure on returns and timing.