"Meta Platforms Inc. found record-shattering demand for its bond sale on Thursday even as its shares plunged, in a sign that bond investors are looking past any concerns about its artificial-intelligence spending plans. The company sold $30 billion of bonds, the largest high-grade US note sale since 2023, drawing the most ever orders at $125 billion. That came on a day where Meta's shares dropped as much as 14%, after it had posted quarterly earnings late Wednesday,"
"Chief Executive Officer Mark Zuckerberg has said that Meta will spend hundreds of billions of dollars over the next decade on data centers and other AI infrastructure to try to achieve human-level AI capabilities and integrate them into its products, including Facebook and Instagram. On Wednesday, Meta said its capital expenditure this year would be as much as $72 billion, a figure that will grow even faster next year."
Meta Platforms executed a $30 billion bond sale that attracted $125 billion of orders, the largest high-grade US note sale since 2023, even as shares tumbled around 14% after earnings. The company plans to spend hundreds of billions over the next decade on data centers and AI infrastructure, with capital expenditure this year as much as $72 billion and rising. Part of that investment will be debt-funded. Persistent inflows into short- and intermediate-term high-grade bond funds for 25 consecutive weeks have boosted demand, while many corporate sales this year have been refinancings rather than new net borrowing.
Read at www.mercurynews.com
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