Meta Shares Slide as AI Spending Plan Alarms Investors

Benzinga reported Friday that Meta Platforms shed 5.5% after a report suggested the social media giant is weighing a major equity raise. The funds would help finance AI infrastructure costs that could reach $145 billion this year alone.

A Prominent Investor Pulls Back on Meta

Hightower Advisors Chief Investment Strategist Stephanie Link moved quickly. She sold half her Meta position on Friday, calling the company’s messaging tone-deaf to shareholder concerns. Link told CNBC’s Closing Bell that revenue figures held up but that operating margins are deteriorating. She argued investors will not back companies where earnings growth is stalling or reversing. Link said she still holds a reduced stake in Meta. However, she wants to see earnings estimates moving clearly higher before rebuilding her position.

Her core frustration centered on capital discipline. Meta has already committed to $125-$135 billion in capital expenditure for 2026, up sharply from $74 billion last year. Since 2021, the company has funneled roughly $82 billion into its Reality Labs division. That unit has produced approximately $80 billion in operating losses over the same stretch. Link said Meta’s shareholder base has little appetite for that pace of spending to continue or accelerate.

Context: Big Tech’s AI Infrastructure Arms Race

The Financial Times reported that Meta executives are actively exploring ways to raise fresh capital to support a capex plan that could climb even higher in 2027. That backdrop has rattled some investors who were already watching margin trends with concern.

Not everyone sees the move negatively. Fundstrat’s Tom Lee told CNBC the development was largely expected. He drew a parallel to Alphabet, which raised $45 billion in a relatively short underwriting window. Lee framed these buildouts as large-scale infrastructure investments that require external financing because internal cash flows cannot fully cover the costs in real time.

Where Meta Shares Stand Now

Meta closed Friday’s session at $593. The stock is down roughly 8.8% year-to-date and has lost about 13.4% over the past twelve months. Its 52-week range runs from $520 to just over $796, leaving the shares well below their recent peak. The company’s market capitalization sits at approximately $1.51 trillion.

Despite the selloff, at least one analyst remains constructive. RBC Capital reiterated an Outperform rating with an $810 price target this week. That implies upside of more than 37% from Friday’s close if the firm’s thesis plays out.

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