The cost of insuring Meta's debt against default reached a record this week. Five-year credit default swaps rose 7.6 basis points to 114.79, an all-time high, according to Markit data cited by Reuters. Meta shares fell 7.4% to $645.92.
The move followed Meta's raised 2026 capital spending forecast of $135 billion to $145 billion. The company also posted negative free cash flow of $2.12 billion in the third quarter, its first such quarter since 2012. It held $82.45 billion in cash and marketable securities at the end of September, and has sold $55 billion of bonds over the past year.
The widening swap spreads are not a sign of imminent default, but they show credit investors pricing in the strain of funding AI data centers with debt. Swaps on Oracle also traded near records.