Meta (META) Shares Drop 5.5% on Report It May Sell Stock for AI Spending

Meta Platforms (META) shares tumbled 5.5% to $593.00 on Friday, June 5, 2026, after the Financial Times reported the company is considering raising tens of billions of dollars through a share sale to fund AI infrastructure. The discussions gained urgency following Alphabet’s $84.75 billion capital raise this week, people familiar said, though Meta has not hired banks or made a decision. A spokesperson called the report “pure speculation.” Meta in April raised its 2026 capital expenditure forecast to an upper limit of $145 billion, while Alphabet’s annual capex cap stands at $190 billion. A potential equity offering would mark a departure from relying on internal cash flows. Meta previously turned to debt markets, launching a $30 billion bond program last year and a $27 billion financing agreement with Blue Owl Capital. Investor perception of the two companies diverges sharply. Alphabet’s growing cloud business provides a clearer path to monetizing AI investments, and its stock has surged 115% over the past 12 months. Meta shares have lost about 13% over the same period. Analysts said a share issuance could spark near-term dilution fears but highlights the unprecedented capital demands of the AI arms race.