S&P Global Ratings cut its outlook on Meta Platforms to negative from stable on Oct 30, 2026, leaving the rating itself unchanged. The agency cited uncertainty around elevated AI capex, free operating cash flow and Meta's ability to monetize AI investments, as reported by CNBC.

S&P Global Ratings cut its outlook on Meta Platforms to negative from stable on Oct 30, 2026, leaving the rating itself unchanged. The agency cited uncertainty around elevated AI capex, free operating cash flow and Meta's ability to monetize AI investments, as reported by CNBC.

S&P now expects Meta to burn about $71 billion in cash in 2027 alone, with capex topping $225 billion that year, about $62 billion more than previously expected, according to the Coin Bureau post. It expects Meta will solely use debt to cover its FOCF deficit in 2028, and says debt could cross its downgrade threshold once new leases begin in 2028, per market headlines.

Meta said it "respectfully disagree[s]" with S&P's view on AI monetization, pointing to product opportunities and its strong credit profile. The move came a week after Q3 results showing $135-145 billion guided full year capex and negative $2.12 billion free cash flow, the first red quarter, followed by a 7% post earnings drop and a 15% October fall, its worst month in four years.

Commentary framed Meta as the first of Big Tech's big four AI spenders to get a negative outlook. S&P took the same step with Oracle in July 2025 before cutting it to one notch above junk a year later, while Moody's warned in July that unprecedented AI spending threatens Big Tech credit quality.