S&P cuts Meta outlook to negative, warns leverage could top 1.0x by 2027 on AI capex
fortune · reddit · 2026-11-03
S&P Global revised its outlook on Meta from stable to negative, citing negative cash flow and capex uncertainty while affirming the AA- rating. The agency warned Meta's leverage could exceed 1.0x — the threshold for its current rating — as early as 2027, up from 0.1x in 2025, largely due to its strategy of leasing data-center capacity. It's the latest sign Wall Street is questioning the sustainability of the AI spending boom after Q3 earnings.
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