META Stock Drops Nearly 7% In Afternoon Trading — Here’s What’s Driving The Selloff

A report says Meta is exploring a potential equity raise as AI infrastructure spending ramps up and capital needs grow.

• Meta’s AI-related capital expenditures could reportedly reach as much as $145 billion this year, with spending expected to increase further in 2027.
• The company is reportedly studying multiple funding structures, including approaches recently used by Alphabet, though no decision has been made.
• Separately, Meta is reportedly considering a premium AI agent subscription priced at up to $199.99 per month, putting it in more direct competition with OpenAI and Anthropic.

Shares of Meta Platforms (META) fell nearly 7% in afternoon trading on Friday after a report said the company is weighing a large equity raise to help fund its expanding artificial intelligence ambitions.

Meta executives have been exploring “creative” financing options as the company prepares to significantly increase AI-related capital spending, which could reach as much as $145 billion this year and rise further in 2027, reported the Financial Times, citing three people familiar with the matter. 

META Weighs Funding For AI Push

The potential capital raise would support CEO Mark Zuckerberg's push to bring what he has described as “personal superintelligence” to Meta’s ecosystem, including Facebook, WhatsApp, Instagram and AI-powered wearable devices, stated the FT report, adding that discussions around a possible fundraising have gained momentum following the success of a recent equity raise by Alphabet.

Meta’s deliberations come as U.S. equity capital markets experience a surge in activity. SpaceX is expected to launch its IPO next week, while AI companies Anthropic and OpenAI are also exploring public listings that could rank among the largest technology offerings in recent years. 

META Studies Financing Structures

According to the report, Meta has not hired banks for a potential offering and may ultimately decide against issuing new shares.

The report added that Meta has studied structures used by Alphabet, including mandatory convertible preferred securities, which allow companies to raise cash immediately while delaying stock issuance.

Finance Chief Susan Li and President Dina Powell McCormick are reportedly leading discussions around potential financing strategies and long-term infrastructure planning. 

META Eyes Premium AI Subscription

In separate news, Meta is reportedly considering charging as much as $200 per month for a premium version of its planned AI agent product, currently known as Hatch, according to The Information.

The tool is designed to perform tasks such as creating software applications, managing calendars and sending emails based on user prompts. The report said Meta is evaluating multiple pricing tiers, including a $199.99 monthly plan with higher usage limits, though final pricing has not been determined.

If launched, the product would put Meta in more direct competition with AI companies such as OpenAI and Anthropic, which already offer paid AI assistant and coding tools.

META Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment around META was ‘bullish,’ while message volume was ‘high.’

The META stock has fallen 8% in the past 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<