Meta Shares Drop Toward 2025 Lows; Agrees $10B Funding Deal for Louisiana Data Center
Meta shares plunged, wiping out $100M in market cap as its stock neared 2025 lows of $480–500 and Capex exceeded 90% of operating cash flow. Meta will fund service costs for its $10B Louisiana data center, delivering Entergy customer savings of $2B over 20 years and $650M in commitments.
1. Stock Performance and Legal Impact
Meta shares fell sharply following an adverse court ruling, erasing approximately $100 million in market cap and driving the stock toward its 2025 lows in the $480–500 range. Investors are concerned that capital expenditures have surged above 90% of operating cash flow this year, suggesting margin pressure and delaying any meaningful return on invested capital until 2027 or later.
2. Louisiana Data Center Agreement
Meta committed to funding the full cost of service for its planned $10 billion hyperscale data center in northeast Louisiana, underpinning Entergy’s infrastructure build-out. The revised deal is set to generate nearly $2 billion in customer savings over 20 years and follows a previous $650 million arrangement, supporting new gas‐fired plants, high‐voltage lines, battery storage and nuclear upgrades.