From CNBC · CJ Haddad · · 1m 20s
Meta stock plunges as AI spending drains cash
Meta shares fell 6% after reporting negative free cash flow and raising capital spending guidance, signalling investor concern over the company's artificial intelligence strategy.
In brief
Meta shares fell 6% after reporting negative free cash flow and raising capital spending guidance, signalling investor concern over the company's artificial intelligence strategy. Meta stock sank 6% Thursday after reporting negative free cash flow of negative two point one two billion dollars in Q three and raising…
Meta shares sink on cash flow miss
Meta stock fell roughly 6% on Thursday after the social media giant reported negative free cash flow of negative two point one two billion dollars in its third quarter.
Company raises AI spending floor
Meta raised the floor of its full-year capital expenditure guidance to one hundred thirty five billion dollars from a previous one hundred thirty billion dollars, signalling deeper investment in artificial intelligence.
Credit concerns mount for investors
The spread on Meta's five-year credit default swaps reached all-time highs on Thursday, a signal of growing credit concerns from investors as the company leans deeper into its artificial intelligence spending plans.
Meta creates new stock class
Meta revealed it would create a new class of nonvoting Class C common stock to maintain its founder-led structure and provide the ability to finance its growth, after CEO Mark Zuckerberg considered leaving California.
The headline
Meta stock sank 6% Thursday after reporting negative free cash flow of negative two point one two billion dollars in Q three and raising its full-year capital expenditure floor to one hundred thirty five billion dollars.
