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Increasingly, Meta has been using debt to fuel its spending, amassing $59 billion in long-term debt on its balance sheet by the end of 2025, double the prior year’s total. And that doesn’t count the “aggressive” accounting it has used to keep the cost of a $27 billion Louisiana data center off its books. “The spending growth looks increasingly unsustainable,” The Wall Street Journal’s “Heard on the Street” columnist Asa Fitch wrote this week.

Now, as the company careens from one staggeringly expensive misadventure to another, its cash-cow core business is starting to wear out. Last quarter, the number of daily active users across its properties declined for the first time to 3.56 billion from 3.58 billion.

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[-] MajorasMaskForever@lemmy.world 9 points 13 hours ago

Smaller businesses or privately owned businesses with a smart owner do.

Large publicly traded companies are sustained by a perception that an investment in or loan to that company will pay off in a higher dollar amount in the future, so if the perception becomes the company is shrinking then the investments and loans slow down which makes the perception worse, you get that feedback loop which turns into the death spiral.

So the bigwigs at the top of these companies have to be professional liars and gamblers to change the perception and make it look like everything isn't just fine, they're doing great! The line must go up.

this post was submitted on 09 May 2026
485 points (95.0% liked)

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