Meta stock price on Wednesday rose around 4 per cent in extended trading after earnings report disclosed a number of key details. Meta raised the lower end of its annual spending forecast and said it would introduce new non-voting shares, in a move that would help fund its costly AI expansion. Meta has been pouring money into chips and data centers to compete more aggressively with OpenAI and Anthropic, eroding its historically strong free cash flow.
The new shares may allow the company to finance acquisitions and attract top talent without diluting CEO Mark Zuckerberg's voting control amid Silicon Valley's intensifying AI race. Facebook and Instagram parent said it now expects capital expenditure to be between $135 billion and $145 billion this year, up from $130 billion to $145 billion expected previously.
