Meta stock drops 6% as AI spending drives free cash flow negative

Meta shares fell about 6% Thursday after the company reported negative free cash flow in Q3 and raised its full-year capital expenditure forecast, signaling growing investor credit concerns. Meta's five-year credit default swaps hit all-time highs as the company deepens AI spending. Full-year capex guidance rose to $135-$145 billion, while quarterly free cash flow was negative $2.12 billion. Meta announced a new nonvoting Class C stock to maintain its founder-led structure and finance growth. CEO Mark Zuckerberg could face a multi-billion-dollar tax bill if California's wealth tax passes, though the stock plan convinced him to stay. Revenue rose 26% to $64.60 billion.