GoKawiilMeta shares drop 6% after negative free cash flow, higher capex forecast
Meta's stock fell about 6% after third-quarter results showed negative free cash flow of $2.12 billion and a raised capital expenditure floor, now projected at $135-145 billion for the year. Revenue rose 26% year-over-year to $64.60 billion, beating estimates, while the company also disclosed plans for a new nonvoting Class C stock class tied to Mark Zuckerberg's continued residency in California.
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The widening credit default swap spread suggests bond investors are growing wary of Meta's heavy AI infrastructure spending outpacing its cash generation, which could raise borrowing costs if the trend continues. The new stock structure and reference to a potential California wealth tax indicate Meta is taking steps to keep Zuckerberg's control and location stable even as spending strains its finances.
- Meta's Q3 free cash flow turned negative at $2.12 billion amid rising AI investment
- Full-year capex guidance raised to a $135-145 billion range, with the floor increased
- Meta created a new nonvoting Class C stock partly to keep Zuckerberg in California amid wealth tax concerns
Meta Ray-Ban Display Glasses — Meta just unveiled these at Connect, and they're central to the AI spending story driving today's headlines. If you're curious what all that capex is actually building toward, these smart glasses with a built-in display are a tangible example of Meta's AI ambitions in consumer hardware.
See Meta Ray-Ban Display Glasses on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: cnbc.com — Cj Haddad, 2026-10-22
Published there as: “Meta stock sinks 6% as AI spend pushes free cash flow negative”
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