Wire reporting: (Reuters, via CNA)

S&P Global Ratings on Friday revised its outlook on Meta Platforms to negative from stable, citing uncertainty around the company's capital spending and free cash flow, Channel News Asia reported, carrying Reuters^1,3.

CNBC said the credit rating agency pointed to elevated capital expenditures and negative free cash flow after Meta's third-quarter results last week².

Meta forecast full-year capital spending of $135 billion to $145 billion and reported a free cash flow deficit of $2.12 billion in the third quarter, compared with positive free cash flow a year earlier^1,2.

S&P said it was less certain Meta would curb spending as previously expected, given ambitious multi-year artificial intelligence investment plans, according to the Reuters report carried by CNA¹.

The agency said Meta's ability to monetize those AI investments is more limited than peers' and it was unclear when related revenue would exceed rising costs¹.

S&P now forecasts free operating cash flow deficits of $39 billion in 2026 and $71 billion in 2027, and said elevated spending could keep that measure negative beyond 2028, CNA reported¹.

The ratings firm said it believes Meta's leverage could rise above 1.0 times as early as 2027, which it described as its threshold for the AA- issuer credit rating¹.

CNA, citing Reuters, said Meta recently planned to sell $97.5 billion in stock to fund AI infrastructure¹. CNBC said the company on Monday planned to raise $95 billion, including $35 billion in underwritten public equity offerings and $60 billion via an at-the-market program².

Investors sent Meta shares down about 7% after last week's earnings even as the company beat on revenue, CNBC said, and the stock finished October down 15%².

CNA said shares were little changed in extended trading Friday and were down more than 4% for the week, a fifth straight weekly loss¹.

Meta did not immediately respond to a request for comment from CNBC².