GoKawiilS&P shifts Meta's credit outlook to negative amid rising AI capex
S&P Global Ratings lowered Meta Platforms' outlook from stable to negative while keeping its AA- credit rating, citing concerns about heavy capital expenditure and negative free cash flow. Meta posted negative free cash flow of $2.12 billion in the third quarter and projected full-year capex of $135 billion to $145 billion. The company's shares fell 7% after earnings and dropped 15% for October, its worst month in four years.
GoKawiil's interpretation of the reporting above, not reported fact.
A negative outlook signals that S&P sees a real possibility of a future downgrade if Meta's spending trajectory doesn't improve, which could raise borrowing costs for the company. The timing coincides with Meta's plan to raise $95 billion through equity offerings to fund AI infrastructure, suggesting investors and rating agencies are watching closely how the company balances aggressive AI investment against financial discipline. The market reaction indicates growing unease about whether heavy AI capex will pay off in the near term.
- S&P revised Meta's credit outlook to negative while maintaining its AA- rating.
- Meta reported its first-ever negative quarterly free cash flow of $2.12 billion alongside projected capex up to $145 billion.
- Meta shares fell 7% post-earnings and 15% for the month, coinciding with plans to raise $95 billion for AI funding.
Source: cnbc.com — Jonathan Vanian, 2026-10-30
Published there as: “Meta outlook revised to negative by S&P on cash flow and capex concerns”
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