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Benzinga
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Trump Spills Meta's $50-Billion Secret—And Wall Street Is Asking This

1. Trump revealed Hyperion data center costs $50 billion, far exceeding $10 billion estimate. 2. Hyperion costs now represent 70% of Meta's annual capital expenditure budget. 3. Meta secured $29 billion financing, indicating rising costs for Hyperion project. 4. Shareholders face pressure to justify Hyperion's massive investments in AI.

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FAQ

Why Bearish?

The significant cost increase to $50 billion raises investor concerns about efficiency and returns, reminiscent of previous tech over-investments that negatively affected share prices.

How important is it?

The shocking new details surrounding the Hyperion project have direct implications for Meta's fiscal strategy and investor confidence.

Why Short Term?

Immediate investor sentiment may shift negatively due to concerns over overspending and ROI for the Hyperion data center.

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