$RADR Meta Is Having a Fallout? Google Faces Big Challenges Too! Let’s Talk About This Week’s US Stock Market.
1. For the week of October 5, Needham analyst Laura Martin threw a bombshell: By the end of Q2, Meta had roughly $628 billion in potential debt. After including it in enterprise value, the EV/FY27E revenue multiple jumped from 6.15x to 8.32x—an overnight “valuation increase” of 35%. So what exactly happened?
2. The answer is hidden in the fine-print footnotes at the very bottom of the earnings report—like an elephant in the room. Just in July 2026, Meta signed new data-center lease obligations of about $68 billion, equivalent to 80% of its total on-balance-sheet debt as of the end of June. Put bluntly, Meta is effectively hiding some huge debts in the footnotes rather than in the main financial statements—so the reality may not be as rosy.
3. Goldman Sachs data shows that among mega-cap technology companies, total lease commitments have reached $1.5 trillion, with $1 trillion coming from leases that haven’t even started yet. Under GAAP, how these “not-yet-started” leases are treated causes real leverage to be systematically underestimated over the long term.
4. And even more interesting: when the same method is applied to Alphabet, its adjusted valuation multiple reaches 9.0x—higher than Meta!
5. But Xiao Qin also wants to say this: don’t panic just because you see liabilities. The big tech companies are borrowing these debts to invest. Once those plans come to fruition, future profits could roll in fully—meaning a financial-statement turnaround might be just a decision away!
6. For the short term, Meta has indeed run up a bit too much, with the share price near the prior high—consider taking some profits. As for Google, it has already pulled back significantly earlier, so it may be more suitable for positioning. Of course, these might only be supporting roles—the real lead actor is whether Nasdaq can break through the prior high smoothly. That’s when the main upswing begins!
1. For the week of October 5, Needham analyst Laura Martin threw a bombshell: By the end of Q2, Meta had roughly $628 billion in potential debt. After including it in enterprise value, the EV/FY27E revenue multiple jumped from 6.15x to 8.32x—an overnight “valuation increase” of 35%. So what exactly happened?
2. The answer is hidden in the fine-print footnotes at the very bottom of the earnings report—like an elephant in the room. Just in July 2026, Meta signed new data-center lease obligations of about $68 billion, equivalent to 80% of its total on-balance-sheet debt as of the end of June. Put bluntly, Meta is effectively hiding some huge debts in the footnotes rather than in the main financial statements—so the reality may not be as rosy.
3. Goldman Sachs data shows that among mega-cap technology companies, total lease commitments have reached $1.5 trillion, with $1 trillion coming from leases that haven’t even started yet. Under GAAP, how these “not-yet-started” leases are treated causes real leverage to be systematically underestimated over the long term.
4. And even more interesting: when the same method is applied to Alphabet, its adjusted valuation multiple reaches 9.0x—higher than Meta!
5. But Xiao Qin also wants to say this: don’t panic just because you see liabilities. The big tech companies are borrowing these debts to invest. Once those plans come to fruition, future profits could roll in fully—meaning a financial-statement turnaround might be just a decision away!
6. For the short term, Meta has indeed run up a bit too much, with the share price near the prior high—consider taking some profits. As for Google, it has already pulled back significantly earlier, so it may be more suitable for positioning. Of course, these might only be supporting roles—the real lead actor is whether Nasdaq can break through the prior high smoothly. That’s when the main upswing begins!
