S&P Global Ratings affirmed Meta's AA- rating but revised its outlook to negative, citing heavy AI capital spending, negative free cash flow, and doubts that Meta can monetize its AI investments as well as peers. S&P now expects capex above $225 billion in 2027, up from $163 billion previously, pushing adjusted leverage to 1.1x, past its 1.0x downgrade threshold, which could lead to a downgrade if the forecast holds. Meta disputed S&P's assessment, citing significant product and business opportunities ahead. To help fund the buildout, Meta sold $25.0 billion of Class A stock and $12.5 billion of mandatory convertible preferred stock, about $37.5 billion in total, and plans a $60 billion Class C at-the-market program starting in January 2027. The stock closed at $614.99, down 1.53%, after October's 15.2% decline made it Meta's worst month in four years.
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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 | $1.7T |
| Close on 10/30/2026 | 614.98 |
| 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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