Meta outlook revised downward by S&P on cash flow and capex concerns

CEO of Meta Platforms Mark Zuckerberg attends a press briefing held by U.S. President Donald Trump with AI executives following a meeting on artificial intelligence, outside the West Wing of the White House on September 29, 2026 in Washington, DC. Finn Gomez | Getty ImagesMeta's outlook has been revised downward by S&P Global Ratings on concerns surrounding cash flow and AI spending.The credit agency said Friday that the outlook reflects "uncertainty" about Meta's elevated capex and its negative free cash flow. Meta's credit rating was revised from AA- stable to AA- negative, S&P said. S&Ps highest credit rating is AAA. Anything below BBB falls into the junk bond category. The agency questioned "Meta's ability to monetize its AI investments" relative to its peers, which are also spending heavily on data center buildouts and going cash flow negative in the process. Although Meta has recently debuted its Muse AI agent app and related foundation models, S&P said "it is unclear when these revenue streams will generate material contributions that exceed their rising costs over the next few years."A Meta spokesperson pushed back on the revision."We respectfully disagree w...