Meta stock fell nearly 7%. Free cash flow went negative. Credit default swaps hit record highs.
Mark Zuckerberg spent so much on AI that the company now has less cash than a man at a casino buffet who "just came to look."
The five-year credit default swap is the part that matters. Investors are paying for insurance in case Meta cannot pay its debts. Meta. The company that owns Facebook, Instagram, and WhatsApp. The company that prints money by showing your aunt ads for orthopedic sandals.
Buying protection on Meta's debt is like buying flood insurance for the ocean.
Let's be fair to Zuckerberg. He promised AI. He delivered a bill. Most men can't even do half of that.
Technically, the chart tells you nothing. Down 7% is a candle. Candles are red or green. This one is red. I have consulted the oracle.
Retail traders will call this a buying opportunity. They call everything a buying opportunity. A house fire is a buying opportunity if the lot is zoned right.
They will buy the dip with money they set aside for their daughter's braces. Then they will explain to her, on a Discord call, that orthodontics are a "legacy cost center."
Somewhere a guy named Trevor is opening a Robinhood account on his lunch break to average down on Meta. He has never read a balance sheet. He once read half of a tweet about one.
Meta will be fine. The company has billions in assets and a founder who wears a gold chain without irony. Fine.
You will not be fine. Your Meta shares are now a leveraged bet on whether a chatbot can learn to sell sandals to your aunt.
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