Meta sold $15 billion of corporate bonds
In one line, Meta sold $15 billion of corporate bonds to fund AI equipment, and orders were heavy. Meta rose 2.34% to $620.95.
In one line, Meta sold $15 billion of corporate bonds to fund AI equipment, and orders were heavy. A credit outlook still turned negative. A corporate bond is a debt note issued by a company.
Meta rose ▲ 2.34% to $620.95. It issued $15 billion of dollar bonds across five maturities. Orders reached as much as $58 billion, about 3.9 times the deal. It was the first issue since a $25 billion sale in April. Adding a first euro bond, DK said this round could exceed $20 billion. That larger figure was an outlook, not a finished sale. S&P moved the credit outlook from AA- stable to negative because of huge capital spending and negative free cash flow. Capital spending is money spent on long-lived equipment. Free cash flow is cash left after that spending. Negative means cash was short, not left over. DK also said Meta had to offer a higher rate than in April.
Anthropic is not listed. A report said it told IPO investors that a 15-person chip team had already used Claude to design a custom chip and had shortened design time versus Nvidia and AMD. It did not plan to sell the design tools, and it planned to keep using Nvidia, AMD, AWS, and Google chips. That is reported marketing before a listing, not a confirmed product launch.
Fabrinet rose ▲ 15.48% to $363.43. Fiscal first-quarter revenue was $1.474 billion, up ▲ 51%, and adjusted earnings per share were $4.34, a record. Adjusted means one-time costs were removed. Data center revenue jumped 78%. Second-quarter adjusted earnings-per-share guidance of $4.77 to $4.92 beat a $4.41 forecast. Expansion spending pushed quarterly free cash flow to a $137 million outflow.
Shopify fell ▼ 8.71% to $142.62. Adjusted earnings per share of $0.49 beat forecasts, but revenue of $3.742 billion, up 32%, slightly missed the consensus, the average forecast. Gross merchandise volume of $119.15 billion also missed. Subscription revenue growth was 20%, and AI costs lowered subscription margin. Margin is the share of revenue left after costs. Fourth-quarter growth guidance stayed in the low 30% range.
Three lines to keep. Meta's bonds sold, but the credit outlook turned negative because of equipment spending. Optical contract manufacturing jumped on data center revenue. Shopify's profit was fine, but sales and transaction volume missed.
Left out: Coupang, SK hynix, and names after Fiserv. The euro-bond addition above $20 billion was an outlook.