Meta’s (META) shares traded flat early Tuesday and are down roughly 10% over the past five days. This comes as the social media giant continues to tap the debt market for its AI infrastructure buildout despite worries about its capital expenditure.
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The latest media reports indicate that the Menlo Park, California-based company has tapped investment banking heavyweights Morgan Stanley (MS) and JPMorgan (JPM) to help arrange a $13 billion financing deal for its data center in El Paso, Texas. The bulk of the package is expected to be in the form of debt, insider sources told Bloomberg.
Meta broke ground on the facility in October 2025, noting that the facility can scale to one gigawatt to support its AI workloads. The tech company at the time said it was boosting its investment in the facility to more than $10 billion.
The additional debt for the site comes days after a regulatory filing from the company shows that it raised $25 billion from a six-part investment-grade bond sale. In 2025, Meta had raised $30 billion from a bond sale — its largest debt offering to date.
Big Tech Turns to Debt to Fund AI Buildout
However, Meta is not alone, as tech rivals Alphabet (GOOGL) and Amazon (AMZN) are also tapping the debt market.
Meta remains resolute to boost its infrastructure base in preparation for the AI era despite investors’ concerns about the spending and when these investments will deliver more impressive revenue growth.
Late last month, Meta shares tumbled despite the company’s first-quarter 2026 earnings beat. Instead, investors were discouraged by Meta raising its capital expenditure for the full fiscal year to between $125 and $145 billion.
Is Meta a Good Stock to Buy?
On Wall Street, Meta’s shares continue to boast a Strong Buy consensus rating from analysts. This is based on 30 Buys and seven Holds assigned over the past three months.
In addition, the average META price target of $823.04 suggests about 35% upside from current trading levels.
