Meta shares slump after reports of major Instagram stock sale during market rout
META•Meta shares slid during Friday’s rout that sent the Nasdaq 100 down 4.77% and the S&P 500 down 2.64% after reports the Instagram owner plans a major stock sale. The selloff was driven by chipmakers plunging as much as 13% and a stronger-than-expected May jobs gain boosting rate hike bets.
1. Market Selloff Driven by Jobs Data
U.S. benchmarks tumbled on Friday with the Nasdaq 100 off 4.77% and the S&P 500 down 2.64%, marking the Nasdaq’s worst day and week since April 2025. A May jobs gain of 172,000 and unemployment steady at 4.3% fueled expectations for further rate hikes, while semiconductor stocks slumped—Micron by 13%, Intel by 12% and Broadcom by 8%.
2. Meta Stock Sale Speculation
Meta shares joined the broader tech decline as reports circulated of a major stock offering by the Instagram owner, prompting concerns over share dilution. Investors are weighing how proceeds might fund growth projects versus the impact of increased share count on earnings per share.
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