Meta's post-hours rally gives way to dual stock and bond selloff: Future spending commitments surge to $825 billion, credit risk metrics hit an all-time high.

Meta’s Q3 revenue and Q4 guidance both exceeded expectations, pushing its shares up over 6.5% in after-hours trading on Wednesday. However, regulatory filings released Thursday revealed that as of the end of September, the company’s total committed future expenditures stood at around $825 billion, covering agreements including leases, cloud computing contracts, and data centers, with a large portion of the funds directly tied to AI computing power and infrastructure construction. This figure is a sharp increase from the roughly $700 billion disclosed in July, with over $100 billion in new commitments added in just a few months. The market reversed course immediately: by Thursday’s U.S. market close, Meta’s shares fell around 7%, wiping out over $100 billion in market capitalization. The five-year credit default swap (CDS) price, a key gauge of Meta’s credit risk, surged to an all-time high, and the company’s bonds weakened significantly relative to U.S. Treasuries. Analysts pointed out this reflects deep-seated investor concerns: tech giants’ continued borrowing to expand AI capabilities will further exacerbate the already oversupplied bond market pressure. Meanwhile, CDS prices for hyperscale cloud providers and chipmakers including Oracle, Microsoft, and Broadcom also rose in tandem, signaling spreading market caution over debt risks across the entire tech sector.