Meta's Stock Plunge and Rising Debt Concerns

Meta’s stock price fell by over 6%, causing a $100 billion loss in market value, amid rising debt concerns.

The company’s future payment obligations rose to around $82.5 billion, up from $70 billion in July, with $35.57 billion attributed to data center rental costs and $45.45 billion to cloud computing and other contracts.

This has led to a surge in Meta’s 5-year credit default swap (CDS) price, reaching a record high of 119.3 basis points on Thursday, with its bonds also showing a poor performance compared to US Treasury bonds.