Meta Platforms: Debt default insurance costs hit a record high, AI investments raise concerns
2026-10-24 02:43:07
According to CoinMeta, as reported by Benzinga, Meta Platforms ($META) is facing warnings from the bond market due to the cost of its debt default insurance rising to record levels, reflecting market concerns about the company's AI investments. The five-year credit default swap for Meta increased by 7.6 basis points to 114.79 basis points, indicating an increased demand from investors for protection against potential credit risks. This move comes after Meta sold $55 billion in bonds over the past year, including $30 billion in October 2025 and $25 billion in April. Meta also raised the lower end of its 2026 capital expenditure forecast to $135 billion and maintained the upper end at $145 billion to accelerate investment in AI infrastructure. The free cash flow in the third quarter was negative $2.12 billion, marking the first quarterly cash flow shortfall for Meta since 2012. Despite facing these warnings from the credit market, as of the end of September, Meta still had $82.45 billion in cash and tradable securities, with quarterly revenue growing by 26% to $64.6 billion.
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Source:X
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