S&P downgrades Meta's credit outlook to negative, AI faces a cash flow deficit of $71 billion due to spending threats
2026-10-31 21:15:35
According to CoinMeta, Standard & Poor's Global has downgraded the credit outlook for Meta to negative, anticipating a cash flow shortfall of $71 billion by 2027. The reason is that AI expenditures threaten its AA rating. Meta is facing a new round of scrutiny regarding its artificial intelligence expenditures, and Standard & Poor's warns that expanded infrastructure investments by Meta could lead to a cash flow deficit. Although Meta still maintains a AA rating, Standard & Poor's believes that ongoing negative cash flows and rising debt may weaken its financial position. According to the latest financial report, Meta's revenue grew by 26% in the third quarter to $64.6 billion, but its free cash flow was negative at $2.12 billion.
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Source:Coinpaper
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