3 Stocks Diluting Shareholders to Fund Big Long-Term Opportunities
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Summary
Coherent, AST SpaceMobile, and Welltower are issuing shares to fund long-term growth opportunities, including optical networking, satellite communications, and senior housing. While dilution is a near-term concern, each company is pursuing large addressable markets with strategic backing from major players like NVIDIA and SpaceX.
Market Impact
Share issuance by these companies may pressure near-term stock prices due to dilution, but if investments succeed, long-term value creation could offset the dilution. Coherent's partnership with NVIDIA and AST SpaceMobile's satellite ambitions align with high-growth tech themes, while Welltower benefits from demographic trends. Market sentiment may hinge on execution and cash flow milestones.
Why It Matters
These cases illustrate how share issuance, often viewed negatively, can be a rational strategy to finance large-scale opportunities, particularly in capital-intensive industries like AI networking, space-based telecom, and senior housing.
Key Points
- Coherent issued $2 billion in stock to NVIDIA, funding optical networking for AI data centers; shares up over 100% in 2026.
- AST SpaceMobile raised ~$700 million last quarter and $3 billion in 12 months to build satellite infrastructure; revenue remains small but growing rapidly.
- Welltower issued ~$8.5 billion in shares over 12 months to acquire senior housing properties, capitalizing on aging U.S. demographics.
Key Entities
Evidence
The deal added around 7.8 million shares to Coherent’s outstanding share count, leading to dilution of approximately 4%.Supports: Coherent's dilution from the NVIDIA stock sale is small relative to the partnership benefits.
The company issued almost $700 million worth of shares last quarter and has issued almost $3 billion worth of stock in the last 12 months.Supports: AST SpaceMobile has relied heavily on share issuance to fund its capital-intensive satellite operations.
The firm’s Starlink offering generated $11.4 billion of revenue in 2025.Supports: SpaceX's success demonstrates the potential profitability of satellite telecom, supporting AST SpaceMobile's strategy.