KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Meta Platforms (NASDAQ: META) has launched a $30 billion public bond offering, the largest U.S. investment-grade corporate issuance this year, according to Bloomberg. The move comes just days after the company reported disappointing quarterly earnings and signaled plans to ramp up spending on artificial intelligence.
Strong Investor Demand
Sources said Meta received an estimated $125 billion in orders, setting a record level of investor demand for a U.S. corporate bond deal. The bonds will be issued in six tranches, reflecting broad interest across maturities.
This strong appetite underscores investors’ confidence in Meta’s long-term financial stability and AI-focused growth strategy, despite short-term earnings weakness.
AI Spending Push
In its latest update, Meta reaffirmed plans to “aggressively” boost AI-related investment, focusing on building next-generation infrastructure and integrating AI tools across its apps and ad network.
The company’s elevated capital expenditure plans come at a time when tech peers like Microsoft and Amazon are also pouring billions into AI capabilities.
Historical Context
Meta’s $30 billion deal surpasses Mars Inc.’s $26 billion bond issuance in March, becoming the largest U.S. high-grade corporate bond offering of 2025. It is also the biggest since Pfizer’s $31 billion deal in May 2023.
Market Reaction
Despite the record-setting bond demand, Meta shares fell 11.3%, as investors digested the near-term earnings drag from higher AI spending and margin pressure.
Investor Takeaway
Meta’s massive bond deal highlights a clear message: the company is doubling down on AI, even at the expense of short-term profitability.
While the selloff reflects near-term caution, strong investor participation in the bond market suggests institutional confidence in Meta’s balance sheet strength and AI-driven growth outlook.
Comments
Post a Comment