Hugh Middleton
10-26 19:32

$Meta Platforms, Inc.(META)$  It makes sense that they would raise capital after introducing voteless shares. But showing investors some good signs would help, like at least cutting metaverse spending or pausing development there. Nobody would complain about that being paused. Use that money for the AI buildout instead.

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  • Kum Weng
    ·10-26 21:38
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    Meta's $35B Equity Raise: Dilution Math


    Short answer: on a simple share-count basis, the ~$35B raise implies roughly 1.4%–2.2% EPS dilution — around $0.40–$0.62 on a ~$29.33 TTM EPS base. That is modest in isolation, but it is only the first tranche of a much larger financing program, and the mandatory-convertible preferred adds a second layer of dilution that the headline number understates.


    What was actually announced


    The $35B is not a single common-stock deal. It is two concurrent underwritten offerings Sina FinanceTiger News:


    ComponentSizeInstrumentA-class common stock~$22.5BCommon shares, via forward sale agreementsSeries A mandatory convertible preferred~$12.5BDepositary shares (up to 250M)


    Beyond that, Meta has flagged a further on-market (ATM) program of up to ~$60B, taking the total potential equity funding to ~$95B — earmarked for AI infrastructure, against 2026 capex guidance of roughly $135–145B Tiger News. Nvidia, AMD and Broadcom have reportedly signalled interest in

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