TLDR
- Meta sought $20 billion to $25 billion in a bond sale on Tuesday.
- Reuters reported a $15 billion, five-part U.S. dollar offering.
- The stock rose 2.7% Tuesday and gained another 1.46% after hours.
- S&P moved Meta’s outlook to AA- negative on Friday.
- Meta has also outlined a $95 billion plan for its AI work.
Meta Platforms (META) stock rose 2.7% on Tuesday as the company headed to the bond market. In after-hours trading, it added another 1.46%, or $9.07.
The gain broke a rough run. The stock had fallen in 12 of the prior 14 trading sessions.
October was its worst month in four years. Tuesday’s bounce arrived with a big funding ask attached.
Meta aimed to raise between $20 billion and $25 billion in the sale, according to people familiar with the matter. They asked not to be named because the details are private.
About two-thirds of the deal was planned in U.S. dollars. The rest was set to be in euros.
The Price Tag Behind the Plan
The money supports Meta’s push into AI infrastructure, models and services. That push keeps getting more expensive.
In its third-quarter report last month, Meta put full-year capex at $135 billion to $145 billion. That raised the low end of its earlier guidance by $5 billion.
Free cash flow came in at negative $2.12 billion for the quarter. Alphabet and Amazon also reported negative figures.
S&P Global Ratings acted on Friday. It moved Meta’s outlook from AA- stable to AA- negative, citing “uncertainty” around the capex and cash flow.
The AA- rating itself did not change. Only the outlook did.
Meta’s Funding Stack So Far
Tuesday was not Meta’s first visit to the bond market this year. The company raised $25 billion in an April bond sale.
Last week, Meta said it plans to raise $95 billion to fund its AI work. The first $35 billion would come from underwritten public equity offerings.
The other $60 billion would come through an at-the-market program. Bloomberg News first reported the bond plans, and Meta declined to comment.
Final pricing was expected Tuesday afternoon, the sources said. Later in the day, Reuters reported that Meta said it is raising $15 billion through a five-part U.S. dollar bond offering, as it turns to debt markets to help finance its accelerating AI infrastructure investments.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
