Meta outlook revised to negative by S&P on cash flow and capex concerns

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's credit rating has thus been reduced from AA- stable to AA- negative, the S&P Global Ratings said. S&Ps highest credit rating is AAA. Anything below BBB falls into the junk bond category. The social media giant 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.