Watch out for Big Tech companies like Meta and Alphabet issuing more shares and diluting your stock ownership

Rising interest rates change the calculus for how large technology companies fund their spending. When borrowing is cheap, debt is an attractive way to pay for expansion; when rates climb, equity issuance can look relatively more appealing—particularly for companies whose share prices have held up. The hyperscalers, including Meta and Alphabet, are among the firms whose capital-spending needs are substantial, so the mix of debt and equity they choose is worth monitoring.

For existing shareholders, the key concept is dilution: issuing new shares increases the total share count, so each existing share represents a smaller slice of the company. Earnings per share can decline even if total profits are unchanged, and voting power is spread more thinly.

What to watch: disclosures around share counts and buyback activity, since repurchases can offset issuance, and management commentary on financing plans. Dilution is not inherently negative—proceeds can fund profitable growth—but investors should track whether per-share value keeps pace with the business.