I previously suggested not buying on last week’s EPS beat and increase in forward guidance at Meta ($META) — based, in part, by my projection that the company would announce a large equity raise.
I should have shorted the stock at that time because the shares reversed violently that day and have continued their descent in recent trading sessions!
This morning Meta announced a massive equity offering to fund their AI ambitions:
The company launched public offerings of about $35 billion in common stock and convertible preferred stock. It also said it plans to launch a separate at-the-market share sale program of up to $60 billion after its new non-voting Class C shares begin trading, which is expected in the first quarter of 2027.
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
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