Meta shares fall about 6% and the CDS spread hits a record; the filing shows about $825 billion in contract and lease commitments
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
The market is responding to Meta's SI spending with rising credit concerns, and the company's compute commitments have grown from about $700 billion in July to $825 billion.
According to CNBC, Meta shares lost about 6% on Thursday after the quarterly report, in which free cash flow turned negative, while the spread on five-year credit default swaps reached an all-time high, which CNBC reads as growing credit concerns among investors amid the company's spending on SI. According to The Next Web, citing Bloomberg's tally, the quarterly filing with the regulator lists future commitments of about $825 billion: $454.5 billion in non-cancellable contracts (mostly cloud capacity, servers and networking equipment), $355.7 billion in leases for data centers and energy infrastructure that have not yet started, and a deal for up to $14.7 billion of cloud capacity over five years; in July Bloomberg put the commitments at almost $700 billion.
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