● IndustryOct 31, 2026 · 04:238 sources
S&P Shifts Meta's Credit Outlook to Negative Over Rising AI Costs
From marketbrief.now
AI;DR
S&P maintained Meta's credit rating but shifted its debt outlook to negative following a review of the company's AI spending. The agency cited instability in Meta's free operating cash flow and increased capital expenditures from multiyear AI investments, projecting the company will need to rely on debt to finance a cash flow deficit in 2028.
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- SUPPORT@kylereidhead“It models free cash flow at -$22B in 2026, -$71B in 2027 and -$39B in 2028”x.com
- SUPPORT@milkroadai“the additional financing these companies will need through the end of 2027 could equal roughly 30% of everything the US Treasury is expected to issue over that same period”x.com
- SUPPORT@stocksavvyshay“Meta’s compute capacity is projected to nearly quadruple to 26GW by 2030 on ~$1.2T in cumulative capex”x.com