Meta's stock price fell more than 5% on Friday after reports surfaced that the company is considering a potential equity offering worth tens of billions of dollars to fund its artificial intelligence initiatives.
The Financial Times first reported the development, which has triggered a sharp repricing of the social media giant's shares.
The proposed capital raise would mark a significant shift in Meta's financial strategy, coming just weeks after the company raised its capital spending outlook for 2026.
While the exact size and timing of the offering remain unconfirmed, analysts suggest the move reflects the scale of investment required to maintain leadership in the AI space.
This development adds to a broader pattern of tech companies securing large capital infusions to fund AI infrastructure.
The market reaction highlights investor sensitivity to equity dilution, particularly for growth stocks where valuation multiples remain elevated.