META Plunges ~$245B as Capex Warning Spooks Markets
META beat earnings but disclosed $130–$145B FY2026 capex plus $210–225B in off-balance-sheet opex obligations in its 10-Q fine print, sending the stock from a post-earnings high of $748 to ~$653 (-6.4%), cratering its CDS from 80 to 120 and sparking broader market risk-off.
What we know
An account on X broke the META CDS story, noting CDS went from 80 (July 29) to 120 (Oct 22) — limit up. Barclays spotted that META's 10-Q contained a 'massive spending' warning: in addition to $130–145B capex for FY2026, the company also has $210–225B in off-balance-sheet opex to fund, implying 'massive capital raises incoming'. Another account on X calculated the damage: ~$245B in market cap erased from the post-earnings high of $748.80. On the broader AI buildout, another account on X retweets a Barclays analyst noting META's 10-Q may mark 'the official announcement that the funding environment for the AI buildout has turned the corner' — meaning capital commitments are now locked in at scale. Another account on X pushed back, calling this 'irrational' like the July sell-off. Another account on X was buying META March 2027 $1000C LEAPS into the drop. Broader equity weakness accompanied: Nasdaq 100 fell 2%, S&P 500 -1.1%.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.