S&P Global Ratings lowered Meta Platforms' credit outlook to negative, citing concerns over the size of its AI spending. Meta posted a $2.12 billion free cash flow loss in the third quarter but expects capital expenditures of $135 billion to $145 billion this year. S&P estimates free operating cash flow shortfalls of about $39 billion in 2026 and $71 billion in 2027, and says leverage could exceed 1.0x if spending stays high and AI monetization takes longer than planned, with the rise in debt mainly reflecting Meta's use of leased data-center capacity. A negative outlook does not mean a downgrade, but it sets a higher bar for how soon Meta can turn AI investments into financial returns, and the outlook could revert to stable if leverage stays below the downgrade level and free operating cash flow turns positive in 2028.
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Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.6T |
| Close on 10/30/2026 | 614.99 |
| Change that session | -1.53% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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