US Stock Market Move | Meta (META.US) plans to raise US$35 billion through a stock offering; shares briefly fell more than 2%.

On Monday, Meta (META.US) fell in early trading, dropping more than 2% at one point during the session, before narrowing its decline to 1.7% as of press time. On the news front, Meta Platforms announced the launch of public offerings totaling approximately US$35 billion, comprising common stock and convertible preferred stock, to raise funds for the company's large-scale artificial intelligence strategic expansion. Specifically, Meta's two underwritten public offerings include: approximately US$22.5 billion of Class A common stock through forward sale agreements, and approximately US$12.5 billion of depositary shares representing Series A mandatory convertible preferred stock. Morgan Stanley and Goldman Sachs Group, Inc. are serving as joint book-running managers for the offerings. Meta said the net proceeds from the two offerings will be used for general corporate purposes, including artificial intelligence infrastructure construction. NVIDIA Corporation, AMD and Broadcom Inc. intend to subscribe for up to US$5 billion of Class A common stock in aggregate. In addition, Meta plans to launch an at-the-market (ATM) offering program of approximately US$60 billion after Class C common stock begins trading (expected as early as the first quarter of 2027). The preferred stock will automatically convert into Class A or Class C common stock on or around August 15, 2029.