S&P Gives Meta Negative Outlook After $2.12 Billion Free Cash Flow Deficit
Updated
Updated · CNBC · Oct 30
S&P Gives Meta Negative Outlook After $2.12 Billion Free Cash Flow Deficit
3 articles · Updated · CNBC · Oct 30
Summary
S&P Global Ratings assigned Meta a negative outlook Friday, citing uncertainty over heavy AI-driven spending and the company’s move into negative free cash flow.
Meta said last week it expects full-year capital expenditure of $135 billion to $145 billion and reported negative free cash flow of $2.12 billion — the first time it has gone into the red.
Investors had already reacted sharply to those figures: Meta shares fell 7% after the earnings report even though revenue beat expectations.
The stock ended October down 15%, its worst monthly performance in four years, underscoring how AI investment is overshadowing operating strength.