S&P downgraded Meta's outlook from stable to negative, citing high capex and negative free cash flow; META fell 15% in October, its worst month in four years (Jonathan Vanian/CNBC)

S&P Global Ratings has revised its outlook on Meta Platforms from stable to negative. The agency cited significant uncertainty regarding capital expenditures and free operating cash flow, specifically noting concerns surrounding AI spending. CNA - Business reports that S&P believes Meta's ability to monetize AI investments is more limited than its peers and is unclear when revenue streams will exceed rising costs.

The downgrade follows Meta's forecast of annual capital expenditure between $135 billion and $145 billion, after the company reported a third-quarter free cash flow deficit of $2.12 billion. CNA - Business notes that S&P forecasts Meta will generate free operating cash flow deficits of $39 billion in 2026 and $71 billion in 2027, with elevated spending potentially keeping the figure negative beyond 2028.

According to CNBC, Meta fell 15% in October, marking its worst month in four years. To fund its AI buildout, Meta is planning to sell $97.5 billion in stock via public markets, according to CNA - Business.

Brief written by urgent.news from Techmeme, Economic Times Tech, CNBC Technology, CNBC, CNA - Business — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.