Meta Platforms (NASDAQ:META) is a technology giant that operates social media services like Facebook and Instagram. The company is now focusing heavily on artificial intelligence (AI). In the AI space, it competes with other major firms, including Alphabet (NASDAQ:GOOGL), the parent company of Google.
On June 5, 2026, Citigroup downgraded its rating on Meta Platforms to Underweight from a previous Outperform rating. An "Underweight" rating means the analyst expects the stock to perform worse than the market average. The stock price was $593 at the time of this announcement.
This change in rating follows a report from the Financial Times. The report suggests Meta Platforms may sell new shares to raise tens of billions of dollars. This potential stock offering would be used to fund the company's large investments in artificial intelligence infrastructure.
A stock offering can increase the number of shares available, which may lower the value for current shareholders. As highlighted by the Financial Times, this news comes after Meta Platforms' rival, Alphabet, announced plans to raise $85 billion through a similar equity sale.
In response to the news, Meta Platforms shares dropped by 5.51%, or $34.57, to $593. A company spokesperson called the report "pure speculation." However, they also confirmed Meta Platforms' commitment to AI and its focus on flexible ways to raise capital for future opportunities.
