24/7 Wall Street
31 Oct 2026, 17:36 UTC · 1h ago
S&P Says Meta Can't Make Money From AI as Well as Its Rivals
Impact · against what's priced in
Meta faces a negative credit outlook and an accelerating capex spiral that threatens its free cash flow and leverage profile. While the market already assumed a significant revenue deceleration, the projection of a $71 billion FCF deficit in 2027 and a likely credit downgrade creates a new fundamental risk to the stock's valuation.
- META−0.60
Challenges what's priced in
- The price assumes
A free-cash-flow margin holding near 22.9%, sustaining current profitability.
S&P projects a $71 billion FCF deficit in 2027 and $39 billion in 2028, directly contradicting the market's assumption of sustained profitability and positive FCF margins.
What META's price assumes · Sep 2
