Larry McDonald said on Bloomberg Surveillance that Meta has raised its off-balance-sheet financing from $35 billion to $600 billion to protect free cash flow, a 17x jump. Meta's filings show $279 billion of signed leases not yet started and $349 billion of non-cancelable commitments as of June 30, 2026, versus $85.1 billion of reported debt at the end of 2025. These obligations sit in footnotes until leases start or payments are made, locking in years of AI spending even as free cash flow fell below $1 billion in the June quarter. The article points to neocloud bonds and Oracle's cash burn as early warning signs, with Meta's third-quarter report on Oct. 21 as the next checkpoint.
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METAAI investmentbondsdata centers
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Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/16/2026 | 709.34 |
| Change that session | -3.72% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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