Meta needs $95 billion. It wants yours.
The plan has three stages, like a heist movie. ,First, $22.5 billion in Class A shares at $642.62 each. Then $12.5 billion in preferred shares., ,Finally, $60 billion in Class C shares, starting no earlier than next year.,
Class C shares are non-voting. ,Meta created them so Mark Zuckerberg keeps majority control over shareholder decisions., You hand over the cash. He keeps the steering wheel. You get a seat in the trunk.
Meta explained its rush with startling honesty. ,It said it would be "prudent" to raise money before more companies absorb the available capital., Translation: the buffet is closing, and Zuckerberg is stuffing rolls in his pockets.
Then there's the circle. ,Nvidia, AMD and Broadcom signaled interest in buying $5 billion of the offering., The chip suppliers fund Meta so Meta can buy chips from the chip suppliers. ,Critics call it circular financing., I call it a dog eating its own tail and billing itself for dinner.
SpaceX joined the party. ,It raised $40 billion to lease data center equipment and called it the largest committed financing for AI chips., Anthropic filed for an IPO. ,Its filing shows $16.29 billion in first-half revenue and more than $600 billion in computing commitments., That is a lot of commitment for a company that is not yet public. Most of you cannot commit to a gym.
Goldman Sachs is thrilled. ,The three deals total at least $210 billion and could pay the bank tens, possibly hundreds, of millions in fees., Goldman wins whether the chips work or not. That is the only guaranteed trade in this entire story.
What does it mean for your stocks? The chart does not care. Price absorbs all of it. Supply of shares goes up, and the line does whatever the line does. A technical analyst reads the line. A retail trader reads the headline, then sells the bottom.
Buy Meta at $642.62 if you want. Zuckerberg will thank you with the one thing he never gives anyone: a vote.
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