Meta stock sinks 6% as AI spend pushes free cash flow negative

Meta CEO Mark Zuckerberg wears the Meta Ray-Ban Display glasses, as he delivers a speech presenting the new line of smart glasses, during the Meta Connect event at the company's headquarters in Menlo Park, California, U.S., Sept. 17, 2025. Carlos Barria | ReutersMeta shares slumped roughly 6% on Thursday as the social media giant showed negative free cash flow in its third-quarter earnings and raised the floor of its full-year capital expenditures.The spread on the social media giant's five-year credit default swaps reached all-time highs on Thursday, a signal of growing credit concerns from investors as the company leans deeper into its artificial intelligence spending plans. Meta said it expects its full-year capex to range from $135 billion to $145 billion, raising the bottom of the range from a previous $130 billion to $145 billion.Free cash flow came in at a negative $2.12 billion during the quarter.The company revealed Wednesday that it would create a new class of nonvoting Class C common stock during its earnings release, meant to maintain its "founder-led structure" and "provide Meta the ability to finance its growth."Meta also said CEO Mark Zuckerberg could leave the state...