The Zhitong Finance App learned that Meta (META.US) fell more than 5% to $657.65 on Thursday. According to the news, according to Meta's regulatory documents, as of the end of September this year, the company has promised a total future expenditure of about 825 billion US dollars, covering various types of agreements such as leases, cloud computing contracts, and data centers. A large amount of capital is directly related to AI computing capabilities and infrastructure construction. This figure is a sharp increase from the approximately 700 billion US dollars disclosed in July this year, adding more than 100 billion US dollars in promises in just a few months.
Prior to that, Meta raised its annual capital expenditure plan, raising the lower limit of this year's capital expenditure forecast from the previous range of 130 billion to 145 billion US dollars to 135 billion US dollars to 145 billion US dollars. It also announced the establishment of a new class of non-voting shares to provide potential financing tools for future acquisitions and other expenses.
On Thursday, the price of the five-year credit default swap (CDS), which measures Meta's credit risk, soared to an all-time high, and corporate bonds weakened sharply compared to US Treasury bonds. This reflects investors' deep concerns: tech giants continue to borrow money for AI expansion, which will further increase the pressure on the already oversupplied bond market.
According to ICE Data Services, the five-year credit default swap price of the company's debt once rose 8.9 basis points to about 119.3 basis points per year. Credit default swap prices have risen as investors' concerns have intensified. This is the highest intraday level since the swap began active trading about a year ago. On the same day, debt protection costs associated with other hyperscale cloud vendors and chip makers also increased, including credit default swaps linked to Oracle (ORCL.US), Microsoft (MSFT.US), and Broadcom (AVGO.US).