A credit analyst in a dim office turns a large dial on a wall gauge from a calm green setting toward a warning orange, while a gold medal on the desk stays in place.

A huge pile of construction cranes and server racks being bought with cash pours out of a company's open vault, leaving the vault floor bare for the first time.

The analyst peers doubtfully at a tall tower of spending that keeps growing, a measuring tape held up beside it.

A company executive stands firm insisting all is well, while a stock chart on the wall behind slides steeply downward.

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Morning Brief · October 31st 2026

S&P moves Meta's credit outlook to negative after its first quarter of negative free cash flow

S&P Global Ratings revised Meta's outlook to negative from stable on Friday evening while keeping its AA- rating. The agency cited Meta's capital spending, guided at $135 billion to $145 billion for the year, and third-quarter free cash flow of negative $2.12 billion, the first negative quarter in the company's history. S&P said it doubts Meta can earn as much from AI as its peers, and is less sure Meta will cut spending once growth flattens from 2028. A downgrade could follow if adjusted debt stays above 1.0 times earnings or free cash flow stays negative past 2028.

The action follows Meta's plan to raise $95 billion of equity, $35 billion through underwritten offerings and $60 billion through an at-the-market program. Meta said it has a "very strong credit profile." Its stock fell 15% in October, its worst month in four years. SourcesB

Sources

BMeta outlook revised to negative by S&P (CNBC)cnbc.com

This story ran in the Morning Brief of October 31st 2026.

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