PremiumMeta Plunges, CDS Hits Record As Barclays Spots "Massive Spending" Warning In The Fine Print
For about an hour last night, Meta (META) was the AI trade's savior.
The stock jumped as much as 5% after hours, to $748.80, on a revenue beat and a Q4 guide whose top end implies a 2-point acceleration. Then the market read the fine print (and listened to the call). By this morning's open, Meta was down as much as 6%, erasing $100 billion in market value, and its 5-year credit default swaps had blown out to a record ~115bps and rising, more than double where they traded a year ago (we can't go back two years ago because the company did not have CDS back then: it is only recently that Zuck discovered the "benefits" of debt).