Meta $META is turning to shareholders for cash!
$META wants to raise up to $95 billion through share issues to build AI infrastructure. The first round is expected to reach $35 billion. The stock is weakening today, as nobody likes dilution.
Now for some data and statistics: The initial offering consists of approximately $22.5 billion in Class A common stock and $12.5 billion in Series A mandatory convertible preferred stock.
The preferred stock will automatically convert into common stock on a set date, so dilution for current shareholders is merely spread out over time. The common stock will be sold through forward contracts, allowing Meta to receive the money only upon later settlement. Major chip suppliers to the company, such as $NVDA, $AMD and $AVGO, have expressed interest in purchasing shares worth up to $5 billion in total.
Well, what can I say... I guess only that I don’t regret not having this company’s stock in my portfolio.