S&P revises Meta outlook to 'negative'

S&P Global Ratings changed its outlook on Meta Platforms to negative from stable on Friday, pointing to uncertainty over the company’s investment plans and its ability to generate free operating cash flow. The Express Tribune reported the revision as concerns grow about whether large technology companies can turn heavy spending into returns quickly.

The report noted that spending across Big Tech has risen in areas including cloud computing, online advertising and e-commerce, with the artificial intelligence boom adding to capital expenditure. Meta had forecast annual capital expenditure of $135 billion-$145 billion last week, following a third-quarter free cash flow deficit of $2.12 billion. The outlook change puts the balance between investment and cash generation at the centre of investor attention around the company.