Meta wants $95 billion. Nvidia, AMD and Broadcom want to chip in up to $5 billion.
Think about that loop. Meta pays those three companies for chips. Now those three companies buy Meta stock. Meta uses the proceeds to buy more chips. It's a hamster wheel with a Nasdaq ticker.
The plan comes in two pieces. ,Meta will first raise $35 billion in underwritten public equity offerings, then another $60 billion through an at-the-market program., The second piece doesn't exist yet. ,Meta cautioned that the program has not been established and its timing and terms remain undetermined., So the plan is to raise $60 billion with a program that is not a program.
Zuckerberg is selling stock for the first time since 2013, per Semafor. The company that spent a decade buying back shares is now handing them out like flyers at a mall.
The new Class C shares carry no vote. ,At least $60 billion of the $95 billion, about 63%, carries no vote., You send Meta your money. Meta sends you a receipt and a polite smile.
The math has context. ,Meta posted $2.12 billion in negative free cash flow last quarter as capital expenditures hit $34.91 billion., That's a company running a lemonade stand out of a nuclear reactor.
Retail traders will see the word "superintelligence" and buy the dip. They'll hold a share with no vote, in a company that already has a controlling shareholder, funding data centers they'll never visit. They'll call that conviction.
Your vote was never going to matter. Now it's in writing.
Photo by Julio Lopez on Unsplash
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