Meta Platforms Inc. (NASDAQ:META) stock gained more than 2% Tuesday as investors rotated back into mega-cap growth stocks after a recent selloff, even as Meta’s expanding AI funding needs and balance-sheet pressure remain in focus.
The rebound extended to rivals including Microsoft Corp. 43% and Communication Services advanced about 1%.
S. dollar bond offering, part of a broader fundraising effort expected to reach at least $20 billion.
The company is also preparing its first euro-denominated bond sale. 5 billion through preferred shares and its plans to sell as much as $60 billion through an at-the-market equity program, Bloomberg reported on Tuesday.
Meta is using the additional capital to expand AI infrastructure and develop products including Muse Wonder. 9 percentage points wider than comparable debt Meta sold in April.
Credit Outlook Adds Pressure S&P Global Ratings lowered the outlook on Meta’s AA- credit rating to negative, citing rising leverage and uncertainty around how long elevated capex and negative free operating cash flow could continue. 0 times next year.
Meta disagreed with the assessment. Spokesperson Kamran Mumtaz said the company sees significant product and business opportunities ahead and believes its credit profile remains very strong.
Meta has also disclosed more than $800 billion in future spending commitments, with nearly half tied to leases that have not yet begun, largely for data centers and energy infrastructure. Experts Remain Cautious On Near-Term Setup Impax Asset Management CIO for fixed income Ross Pamphilon said investors do not need to rush into Meta’s new bonds, citing weakness in recently issued hyperscaler debt and expectations that technology spending may not peak until 2027 or 2028.
5%, citing elevated capex, negative free cash flow and weak stock follow-through after the Muse launch. Baruch pointed to expected 2026 capex of $135 billion-$145 billion and estimates approaching $200 billion in 2027 as major headwinds.
Ritholtz Wealth Management CEO Josh Brown also stayed cautious on the intermediate-term setup and removed Meta from his "Best Stocks in the Market" list. Brown said he would want the stock to reclaim its 50-day moving average near $664 before becoming more constructive.
41 across 50 analysts. Recent actions include Cantor Fitzgerald maintaining Overweight and raising its target to $860, BofA Securities maintaining Buy and lifting its target to $845, and KeyBanc maintaining Overweight with a $905 target.
78%. Large inflows or outflows in those funds could translate into corresponding buying or selling of Meta shares.
76 at the time of publication on Tuesday, according to Benzinga Pro data.
