Meta Plans $30B Bond, Raises AI Capex

Meta posted record Q3 revenue of about $51.2 billion (roughly +26% year‑over‑year) and beat revenue and non‑GAAP EPS estimates with non‑GAAP EPS near $7.25; GAAP EPS was $1.05 after a one‑time, non‑cash U.S. tax charge of about $15.93 billion tied to the recently passed “One Big Beautiful Bill.” Management said it will massively ramp AI‑related capital spending, raising 2025 capex guidance (previously $70–72 billion) to as much as $118 billion and warning that capex and total expenses will climb materially in 2026 as it builds AI infrastructure and recognizes full‑year compensation for newly hired AI talent. To help finance those investments, Meta announced a planned roughly $30 billion bond offering, and executives emphasized heavy compute and infrastructure commitments while downplaying the metaverse. The company has reported large AI commitments — including a reported $14.3 billion investment in Scale AI, about $1.5 billion for an El Paso data center, and a $27 billion financing for its Hyperion project — and said it continues to recruit senior AI engineers even as it cut roughly 600 roles in its AI unit. Shares plunged on the spending and tax headlines, wiping about $29.2 billion from Mark Zuckerberg’s net worth (dropping him to fifth on Bloomberg’s billionaire list); analysts reacted unevenly with some downgrades, and an insider sale by CLO Jennifer Newstead (519 Class A shares on Oct. 28, 2025) was reported.