SP Global Revises Meta Outlook to Negative

SP Global Ratings revised Meta Platforms outlook to negative from stable due to rising artificial intelligence spending and cash flow worries. The agency projects significant free operating cash flow deficits through 2027 as capital expenditures surge.

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FILE PHOTO: The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. REUTERS/Yves Herman/File Photo

Meta Platforms has seen its outlook revised to negative by S&P Global Ratings, driven by surging artificial intelligence spending and cash flow pressures. The rating agency pointed to aggressive infrastructure outlays that threaten the tech giant's balance sheet strength. Investors now face heightened questions over whether heavy capital expenditures will yield returns quickly enough to justify the costs.