Meta to Issue New Class of Shares as It Tightens AI Spending Forecast
The company will issue one non-voting share for each existing share and lift 2026 capital spending to as much as $145 billion.
- On Wednesday, Meta raised its annual spending forecast and announced plans for new non-voting shares to fund AI expansion while CEO Mark Zuckerberg maintains voting control.
- The company now expects capital expenditure between $135 billion and $145 billion this year, up from prior guidance, as it pours resources into chips and data centers to compete with OpenAI and Anthropic.
- Meta reported quarterly revenue of $64.60 billion, exceeding Wall Street estimates of $63.37 billion, though a New Mexico judge ordered a $25 billion penalty earlier Wednesday regarding user data practices.
- Shares rose around 4% in extended trading; the non-voting structure mirrors Alphabet's 2014 move, which allowed co-founders Larry Page and Sergey Brin to retain just over 50% control.
- Growth remains tied to short-video competition against TikTok and YouTube Shorts, while Meta navigates mounting legal battles including an August settlement and Cambridge Analytica case.
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107 Articles
The announcement of Meta, Mark Zuckerberg's group, which wants to launch a new capital raise to finance its huge investments, has fed on Thursday the investors' questions about the ability of companies in the sector to generate profits.
Meta shares fell more than 8% on Thursday as investors reacted negatively to another increase in the technology giant’s forecast for investment in artificial intelligence and its plans to issue a new class of shares to finance the massive spending. The sell-off comes despite better-than-expected quarterly results and a solid business outlook for the company. The market reaction reflects growing concerns about the cost of the global race in artif…
Meta Wants to Tap Equity Markets for AI Before Rivals Soak Up the Capital
Meta Platforms is creating a new class of nonvoting stock it can sell to pay for its AI buildout, and the board committee that recommended it said part of the reason for moving now is that other AI companies are lining up for the same investor money. Recent and expected raises by Alphabet, SpaceX, Anthropic […]
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Meta Shares Drop as Investors Weigh Muse AI Growth Against Soaring Costs
Shares of Meta Platforms fell more than 5% in early trading on Thursday as investors weighed the growth potential of its artificial intelligence business against ... The post Meta Shares Drop as Investors Weigh Muse AI Growth Against Soaring Costs first appeared on [your]NEWS.
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