Meta Platforms (META) Eyes $20 Billion Bond Sale, Enters Euro-De

Alphabet, Oracle, and Meta attempted to raise over $36.7 billion in bonds on Monday. Alphabet and Oracle completed sales totaling $16.7 billion, while Meta's deal is still under discussion. Alphabet sold €6 billion at spreads close to sovereign levels, Oracle priced $10 billion at higher spreads, and Meta aims for at least $20 billion. Oracle also filed to sell $10 billion in common stock. S&P and Moody's rate Alphabet highly, while Oracle is near junk status.

Kalshi traders assign a 71% probability that Meta's $25B New Mexico penalty will be reduced on appeal. Meta plans to appeal after a judge ordered the penalty for misleading data privacy statements. Legal experts suggest the violation count may be challenged. Meta recorded a loss accrual for the penalty, which carries 15% post-judgment interest.

Meta Platforms (META) plans to raise $20 billion through U.S. and Euro-denominated bonds, with $15 billion in U.S. bonds. The company aims to fund AI infrastructure investments. META's stock is trading at $612.82, which is 30.2% undervalued according to its GF Value™ of $878.02. The company has a GF Score™ of 99/100, indicating strong financial performance.

Meta Platforms (META) plans to raise $20-$25 billion via investment-grade bonds to fund AI infrastructure. The offering consists of five tranches in USD and euros. Despite a high credit rating, Meta faces investor resistance due to rising bond issuance costs. GuruFocus rates META as significantly undervalued with a GF Value of $878.02 vs. current price $606.73, and a GF Score of 99/100. Insiders sold $102.96 million in shares over the past three months.

Meta Platforms plans to raise at least $20 billion through a bond sale, including $15 billion in US dollar-denominated notes and a euro-denominated offering. The company aims to finance AI infrastructure costs, with maturities ranging from 5 to 30 years. Initial price guidance varies, with the 30-year notes offering the highest spread. This follows recent bond sales by Oracle, Alphabet, and Microsoft, reflecting the high capital demands of AI development.

Marvell Technology agreed to buy Lumentum Holdings in an all-stock deal valued at $115B, including debt. Marvell shares fell 12.7% and Lumentum dropped 18.6% on the news. The deal, expected to close by 2028, aims to create an AI connectivity leader, with Marvell shareholders owning about two-thirds of the combined company. Both companies' stocks underperformed the implied deal price, reflecting market doubts about the terms and timing.