Meta raises AI capex outlook and issues non‑voting shares, sparking AI‑stock selloff
Meta reported a 26% year‑over‑year revenue rise to $64.6 billion but posted negative free cash flow of $‑2.1 billion. The company lifted the low end of its 2026 AI capital‑spending target to a range of $135 billion‑$145 billion and introduced a new class of non‑voting shares to aid future fundraising. Executives from Broadcom, BlackRock and Nvidia echoed concerns about capital scarcity, and AI‑related equities fell sharply.
Why it matters
The higher capex guidance signals Meta will need more external financing, potentially diluting existing shareholders. The selloff in AI‑linked stocks such as Nvidia and Lam Research reflects market worries that tighter capital could curb AI investment growth.
Key facts
- 1Revenue grew 26% to $64.6 billion year‑over‑year. investing.com
- 2Free cash flow was negative $2.1 billion. investing.com
- 3The low end of Meta’s 2026 AI capital‑spending forecast was raised to $135 billion‑$145 billion. investing.com
- 4Meta announced a new class of non‑voting shares to facilitate future capital raises. investing.com
- 5Nvidia’s shares fell 4.4% after the announcement. investing.com
- 6Lam Research’s shares fell 11.8% after the announcement. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.