Meta’s $30 billion bond sale drew demand four times greater than supply, underscoring strong investor appetite despite the company’s stock plunging more than 11% after disappointing earnings. The funds will support Meta’s aggressive AI expansion, which some analysts say reflects Mark Zuckerberg’s relentless spending, but one backed by over $100 billion in annual revenue. 

While shareholders worry about mounting costs, debt investors see little repayment risk, especially as Meta’s recent quarterly income, excluding one-time charges, topped $18.6 billion, surpassing major corporations combined.

Analysts argue demand for Meta’s bonds stems from investors seeking stable, high-quality issuers rather than fear of missing out on AI. By contrast, unprofitable AI startups like OpenAI or Anthropic remain reliant on equity financing, as debt markets favor established tech titans with proven cash flows and tangible assets.

Finsum: Other tech heavyweights are also leveraging strong balance sheets and low borrowing costs to fund infrastructure such as data centers and GPUs, so infrastructure could be a play.