S&P cuts Meta outlook to negative on AI spending and cash flow

S&P Global Ratings revised Meta's credit outlook to negative, citing uncertainty over the company's elevated capital expenditures and negative free cash flow, while affirming its AA- rating. The agency's Friday action downgrades the outlook from stable, reflecting Meta's heavy AI spending. The company reported negative free cash flow of $2.12 billion in its third-quarter earnings, and expects full-year capex between $135 billion and $145 billion. Meta shares fell 7% after the earnings report and finished October down 15%, its worst month in four years. The company plans to raise $95 billion for AI initiatives, starting with $35 billion in public equity offerings.