Following the recent third-quarter tech earnings reports, Wall Street is increasingly questioning the sustainability of the AI spending boom. Late Friday, S&P Global revised its outlook on Meta to “negative” from “stable,” citing negative cash flow and uncertainty around its capital expenditure plans, Fortune’s Jason Ma reports. The agency affirmed Meta’s AA- credit rating but warned that the company’s leverage could exceed 1.0x as early as 2027. That’s the threshold for Meta’s current rating. Leverage is up from about 0.1x in 2025, largely because of Meta’s strategy of leasing data-center capacity, rather than relying solely on traditional debt financing. Read more [paywall removed for Redditors]: https://fortune.com/2026/11/02/s-p-global-negative-outlook-meta-underscores-risks-ai-boom-cfo/ submitted by /u/fortune
Originally posted by u/fortune on r/ArtificialInteligence