SKN | S&P Global Revises Meta Outlook to Negative as AI Spending Pressures Cash Flow
Company Earnings Reports S&P Raises Concerns Over Meta’s AI Investment Strategy S&P Global Ratings revised its outlook on Meta Platforms to negative from stable on Friday, highlighting uncertainty over the financial consequences of the company’s ambitious artificial intelligence investment plans. The decision reflects growing concerns about whether Meta can generate sufficient returns from its AI infrastructure spending while maintaining strong cash flow and credit metrics. Meta has forecast annual capital expenditure of between $135 billion and $145 billion after reporting a free cash flow deficit of $2.12 billion in the third quarter. The company is also preparing to access public markets through a planned $97.5 billion stock sale to finance its AI expansion. The scale of these commitments has increased scrutiny of how […]
