S&P Global Ratings Assigns Negative Outlook to Meta Over Capex and Cash Flow Concerns
S&P Global Ratings has revised its outlook for Meta Platforms (META) to negative, citing significant uncertainty regarding the company's elevated capital expenditures and recent shift into negative free cash flow. The credit agency's decision follows Meta's third-quarter earnings report, which revealed a $2.12 billion deficit in free cash flow—the first time the company has reported such a figure. Market reaction to these financial developments has been sharply negative. Despite beating revenue expectations, Meta shares fell 7% following the earnings release and experienced a 15% decline throughout October, marking its worst monthly performance in four years. The primary driver of investor concern remains the massive scale of spending required for artificial intelligence infrastructure.