“These Stocks Are Going Down”
Rumored equity raise is negative for Meta due to high dilution cost at current low valuation and investor concerns over return on capital.
We also have rumored news that Met is weighing a big equity raise to finance AI infrastructure.
When I look at my portfolio, I'm heavily invested in artificial intelligence through four hyperscalers. We have Meta, Google, and Microsoft, all spending hundreds of billions of dollars in capex.