S&P Global Ratings cut its outlook on Meta Platforms to negative from stable, citing uncertainty over capital spending and free operating cash flow. The agency expects Meta to post a free operating cash flow deficit of about $39 billion in 2026, widening to about $71 billion in 2027 if spending stays elevated. S&P warned leverage could rise above 1.0x if AI monetization takes longer than expected or if Meta keeps funding infrastructure with debt. The outlook could return to stable if adjusted leverage stays below 1.0x and free operating cash flow turns positive in 2028, through lower spending, stronger AI monetization or more non-debt financing. The article argues the AI buildout is becoming a credit-quality issue, not just an earnings and valuation one.
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METAcreditAI investmentartificial intelligence
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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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