Facebook, Instagram-parent Meta Platforms Inc targets to raise $25 billion from bond sale, reports claim. Here's how META stocks are reacting

Meta stocks on Thursday dropped over 12 per cent. This comes even as Meta is reportedly set to raise $25 billion from bond sale. META share price had witnessed a 28.4 per cent jump for the year so far. U.S. Stock Market indexes S&P 500 slipped 0.2 per cent and edged a bit further from its all-time high set on Tuesday. The Dow Jones Industrial Average was up 199 points, or 0.5 per cent, as of 10 a.m. Eastern time. The Nasdaq composite fell 0.6 per cent from its record set the day before.

Analysts said investors were likely perturbed by how much Facebook’s parent company said it’s planning to spend in 2026. Companies across the industry have been on an investment spree to build out their artificial-intelligence capabilities, and the concern is whether it will all pay off.

Meta Platforms Inc is targeting at least $25 billion in its bond sale, Bloomberg News reported on Thursday, a day after the company forecast "notably larger" capital expenses next year due to investments in artificial intelligence and data centers.


According to fixed-income news service IFR, the Facebook and Instagram parent has filed for a six-part offering without disclosing a size, and is marketing bonds with maturities ranging from five to 40 years.

Citigroup and Morgan Stanley are leading the offering, IFR reported. Shares of Meta were down about 10.5 per cent during premarket hours on news of the bond sale. The social media giant did not immediately respond to a Reuters request for comment.

The longest-dated notes are being offered at around 1.4 percentage points over comparable U.S. Treasuries, Bloomberg News said. Meta last tapped the bond market in 2022 with a $10 billion sale, its first such offering.

FAQs

Q1. How many platforms Meta owns?
A1. Meta Platforms owns Facebook, Instagram, WhatsApp.

Q2. What do we know about Meta Platforms' bond sale?
A2. Meta Platforms Inc is targeting at least $25 billion in its bond sale.