Meta stock sinks 6% on report of stock sale

June 6, 2026 - 00:58

Shares of Meta Platforms tumbled more than 6% on Friday after a report emerged that the company plans to sell new stock to raise capital for its artificial intelligence infrastructure. The move caught investors off guard, as Meta had previously signaled it would fund its AI expansion through existing cash reserves and operating cash flow.

According to the report, the stock sale could raise billions of dollars, which Meta intends to pour into data centers, specialized chips, and other hardware needed to train and run large language models. The company has been racing to catch up with competitors like OpenAI and Google in the generative AI space, but the decision to dilute existing shareholders has raised concerns about near-term earnings pressure.

Analysts noted that while Meta's core advertising business remains strong, the heavy spending on AI has already pushed its capital expenditure forecast higher for the year. The stock sale adds another layer of uncertainty for investors already watching for signs of slowing growth. Some on Wall Street questioned whether Meta could have avoided the dilution by cutting costs elsewhere or delaying certain projects.

The selloff wiped out roughly $60 billion in market value, though Meta's stock remains up significantly from its 2022 lows. The company has not yet commented on the report.