S&P Cuts Meta Credit Outlook to Negative Over Surging Capital Expenditures

S&P Global Ratings has revised its credit outlook on Meta Platforms Inc. to negative from stable, warning of escalating capital expenditures and widening cash flow deficits. The move follows Meta's third-quarter report projecting full-year capital spending between $135 billion and $145 billion and posting its first cash-negative quarter with negative free cash flow of $2.12 billion. S&P projects capex to climb to over $225 billion in 2027 and $252 billion in 2028, generating multi-year free operating cash flow deficits. Following the news, Meta shares dropped 1.55% to close at $614.87, ending October down 15%.