US EditionUh-Oh! Is Meta Platforms Following in Enron's Footsteps?
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3 Articles
Uh-Oh! Is Meta Platforms Following in Enron's Footsteps?
Quick Read Meta Platforms (META) structured a $27B data center joint venture off its balance sheet. Ernst & Young flagged the accounting as a critical audit matter. Meta projects $115B to $135B in 2026 capital expenditures as AI infrastructure spending accelerates. Some critics of the deal are comparing the JV’s structure to those that led to the collapse of Enron. You can earn up to $1,500 in cash bonuses just for moving your savings; see h…
Meta's auditor Ernst & Young raised a red flag over the financial engineering Meta used to keep its $27B Hyperion data center project off its balance sheet (Jonathan Weil/Wall Street Journal)
Jonathan Weil / Wall Street Journal: Meta's auditor Ernst & Young raised a red flag over the financial engineering Meta used to keep its $27B Hyperion data center project off its balance sheet — Meta Platforms' latest annual report contained an unusual, cautionary note for investors.
E&Y has red-flagged a $27 billion artificial intelligence data center project in Meta Platforms' annual report after the company used a complex financial structure to keep the investment off its balance sheet, the Wall Street Journal reported. Meta's stock is currently down 1.8%, and tech stocks are generally underperforming, which could be partly due to the case.
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