Meta outlook revised downward by S&P on cash flow and capex concerns
Meta has been given a negative outlook by S&P Global Ratings due to the company's hefty capital expenditures and concerns about free cash flow.
Meta has been assigned a negative outlook by S&P Global Ratings on concerns surrounding cash flow and AI spending.
The credit agency said Friday that the outlook reflects "uncertainty" surrounding Meta's elevated capex and its negative free cash flow.
Meta said in its third-quarter earnings report last week that it expects full-year capex to come in the range of $135 billion to $145 billion. The company also posted negative free cash flow of $2.12 billion, going in the red for the first time.
Investors sent Meta shares sinking 7% following last week's earnings report despite though the company beating on revenue. The stock finished October down 15%, its worst month in four years.
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- CNBC30 Oct, 23:42
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