S&P Global Ratings downgraded Meta's credit outlook from stable to negative, citing concerns about the company's heavy spending on artificial intelligence infrastructure and its impact on cash flow. The revision reflects broader investor anxiety about Meta's massive AI capital investments and their near-term financial consequences.
Meta's stock declined 15% in October, marking its worst month in four years. The downgrade highlights a key tension facing large tech companies: the need to invest heavily in AI capabilities and to remain competitive, balanced against the pressure to maintain positive cash generation and satisfy shareholders.
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