Meta's rating outlook cut to negative by S&P on AI spending

Davide Barbuscia & Riley Griffin / Bloomberg10-31 01:55

S&P Global Ratings took an early step towards potentially downgrading Meta Platforms Inc's credit rating within the next two years, amid growing pressure on the tech company's balance sheet.(Oct 31): ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2679227669?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-10-31 01:55","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2679227669","market":"other","top_or_hot":-1,"title":"Meta's rating outlook cut to negative by S&P on AI spending","media":"Davide Barbuscia & Riley Griffin / Bloomberg","content":"<div>\n<p>S&P Global Ratings took an early step towards potentially downgrading Meta Platforms Inc's credit rating within the next two years, amid growing pressure on the tech company's balance sheet.(Oct 31): ...</p>\n\n<a href=\"https://www.theedgesingapore.com/news/tech/metas-rating-outlook-cut-negative-sp-ai-spending?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n","source":"edge_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Meta's rating outlook cut to negative by S&P on AI spending</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMeta's rating outlook cut to negative by S&P on AI spending\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-10-31 01:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.theedgesingapore.com/news/tech/metas-rating-outlook-cut-negative-sp-ai-spending?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS><strong>Davide Barbuscia & Riley Griffin / Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>S&P Global Ratings took an early step towards potentially downgrading Meta Platforms Inc's credit rating within the next two years, amid growing pressure on the tech company's balance sheet.(Oct 31): ...</p>\n\n<a href=\"https://www.theedgesingapore.com/news/tech/metas-rating-outlook-cut-negative-sp-ai-spending?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MGK","symbol_name":"Vanguard Mega Cap Growth ETF","start_time":0,"source_url":"https://www.theedgesingapore.com/news/tech/metas-rating-outlook-cut-negative-sp-ai-spending?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","article_id":"2679227669","we_media_id":null,"thumbnails":[],"rights":{"source":"edge_highlight","url":"https://www.theedgesingapore.com/news/tech/metas-rating-outlook-cut-negative-sp-ai-spending?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2679227669","pubTimestamp":1793382925,"columns":[],"sourceInfo":{"source_id":"edge_highlight","name":"Edge"},"weMediaInfo":null,"summary":"S&P Global Ratings took an early step towards potentially downgrading Meta Platforms Inc's credit rating within the next two years, amid growing pressure on the tech company's balance sheet.","collect":0,"end_time":0,"defaultTopTitle":"theedgesingapore.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"MGK":"Vanguard Mega Cap Growth ETF","WEBL":"Direxion Daily Dow Jones Internet Bull 3X ETF","VTHR":"Vanguard Russell 3000 ETF","QFRD":"Pacer S&P 500 Quality FCF R&D Leaders ETF","BAMG":"Brookstone Growth Stock ETF","AGIX":"通用人工智能 ETF-AGIX","COWG":"Pacer US Large Cap Cash Cows Growth Leaders ETF","CAML":"CONGRESS LARGE CAP GROWTH ETF","ITAN":"Sparkline Intangible Value ETF","TMSL":"T. Rowe Price Small-Mid Cap ETF","ISSXF":"IShares Core S&P  500 Index ETF","GRNY":"Fundstrat Granny Shots U.S. Large Cap ETF","ARTY":"ISHARES FUTURE AI & TECH ETF","RWGV":"Direxion Russell 1000 Growth Over Value ETF","IWP":"罗素中型成长股指数ETF-iShares","IVV":"标普500ETF-iShares","DFAL":"Dimensional US Large Cap Core Equity Market ETF","MFSG":"MFS Active Growth ETF","USMC":"Principal U.S. Mega-Cap ETF","TCHP":"T. Rowe Price Blue Chip Growth ETF","PCGG":"POLEN CAPITAL GLOBAL GROWTH ETF","QID":"两倍做空纳斯达克指数ETF-ProShares","HEQQ":"JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF","OEF":"标普100指数ETF-iShares","QTOC":"Innovator Growth Accelerated Plus ETF - October","AFOS":"ARS Focused Opportunities Strategy ETF","AVUQ":"AVANTIS U.S. QUALITY ETF","AGRW":"ALLSPRING LT LARGE GROWTH ETF","ABOT":"ABACUS FCF INNOVATION LEADERS ETF","IWLG":"NYLIM Winslow Large Cap Growth ETF","AIPO":"Defiance AI and Power Infrastructure ETF","VGFPF":"Vanguard Funds PLC","QQJL":"Corgi Growth & Technology 15% Structured Buffer ETF - July Series","CGGR":"Capital Group Growth ETF","SFY":"SoFi Select 500 ETF","MAGQ":"ROUNDHILL DAILY INVERSE MAGNIFICENT SEVEN ETF","STRV":"Strive 500 ETF","GRW":"TCW Compounders ETF","PLTU":"2倍做多PLTR ETF-Direxion","TSEL":"Touchstone Sands Capital Select Growth ETF","GBGR":"Global Beta Rising Stars ETF","GFLW":"VictoryShares Free Cash Flow Growth ETF","CHAT":"ROUNDHILL GENERATIVE AI & TECHNOLOGY ETF","LQAI":"LG QRAFT AI-POWERED U.S. LARGE CAP CORE ETF","QYLG":"Nasdaq 100 Covered Call & Growth ETF"},"translate_title":"标准普尔因人工智能支出将 Meta 的评级展望下调至负面","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WEBL":1.5,"PCGG":1.5,"VTHR":1.5,"QFRD":1.5,"ISSXF":1.5,"TCHP":1.5,"QID":1.5,"IVV":1.5,"AFOS":1.5,"SFY":1.5,"ITAN":1.5,"DFAL":1.5,"MAGQ":1.5,"MGK":1.5,"PLTU":1.5,"RWGV":1.5,"TSEL":1.5,"VGFPF":1.5,"HEQQ":1.5,"CHAT":1.5,"OEF":1.5,"LQAI":1.5,"GBGR":1.5,"ABOT":1.5,"QYLG":1.5,"TMSL":1.5,"QTOC":1.5,"MFSG":1.5,"GRNY":1.5,"BAMG":1.5,"QQJL":1.5,"GFLW":1.5,"AGIX":1.5,"IWLG":1.5,"IWP":1.5,"AVUQ":1.5,"CGGR":1.5,"GRW":1.5,"USMC":1.5,"AGRW":1.5,"STRV":1.5,"COWG":1.5,"ARTY":1.5,"AIPO":1.5,"CAML":1.5},"content_text":"S&P Global Ratings took an early step towards potentially downgrading Meta Platforms Inc's credit rating within the next two years, amid growing pressure on the tech company's balance sheet.(Oct 31): S&P Global Ratings took an early step towards potentially downgrading Meta Platforms Inc's credit rating within the next two years, amid growing pressure on the tech company's balance sheet stemming from elevated spending tied to artificial intelligence (AI).\nS&P lowered the outlook on Meta's AA- credit grade to negative on Friday, according to a statement. The company's rising leverage, a measure of debt relative to earnings, was also a key factor in the decision, the rating firm said.\n\"Meta's ability to monetize its AI investments is more limited than that of its peers,\" S&P said, adding that it's not clear when its expenditures will start producing material revenue that exceeds the rising costs. The outlook \"reflects uncertainty around how long capex will remain elevated and free operating cash flow will be negative\".\nThe decision signals S&P could downgrade the company within the next couple of years, but also means the bond grader isn't actively considering downgrading Meta now. It comes as investors scrutinise Meta's and other industry players' ability to generate tangible returns from the massive investments they've been plowing into the AI buildout. The Nasdaq 100 fell 3.5%, briefly crossing the threshold of a technical correction on Friday, weighed down by disappointing tech earnings.\n\"We respectfully disagree with S&P's assertion about Meta's AI monetization capabilities,\" company spokesperson Kamran Mumtaz said in a statement. \"We see significant product and business opportunities ahead of us, supporting our very strong credit profile.\"\nMeta's current AA- credit rating is the fourth-highest investment-grade score, and a one-notch downgrade would still leave it solidly in high-grade territory.\nStill, the company has been borrowing heavily to fund its ambitions. S&P forecasts Meta's capex will reach US$140 billion ($179 billion) this year, and accelerate to more than US$225 billion in 2027. The tech giant's leverage could climb above 1.0 times as soon as next year, up from about 0.1 times last year, S&P said in the statement.\nEarlier this month, Meta disclosed that it has more than US$800 billion in future spending commitments, with almost half tied to leases that haven't yet begun yet, largely for data centres and energy infrastructure. Despite some hesitancy from Wall Street, which has pressed Meta on how it aims to make a return on its AI investments, company executives have doubled down on the need for future spending.\n\"We expect to continue investing aggressively to support both our core business and emerging AI initiatives,\" chief financial officer Susan Li said during an earnings call with analysts.\nMeta has made headway with its technology in recent months, particularly with its Muse models and personal AI agent. Chief executive officer Mark Zuckerberg and other leaders have outlined several ways the company could make money from these products, including through subscriptions, transaction fees, and potentially even by incorporating advertising, which already generates the vast majority of the company's revenue via apps like Instagram, Facebook and WhatsApp.\nThe company is also developing plans for a cloud business, which could include selling access to various AI models hosted on Meta's existing AI infrastructure or selling access to \"raw\" computing capacity.\nUploaded by Chng Shear Lane","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.52.1","shortVersion":"4.52.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2679227669","isCrawlerRequest":true}