# 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.
- Title: Meta stock plunges as AI spending drains cash · CNBC
- Summary: Meta shares fell 6% after reporting negative free cash flow and raising capital spending guidance, signalling investor concern over the company's artificial…
- Keywords: meta, mark zuckerberg, artificial intelligence, capital expenditure, free cash flow, stock market, business, finance, stock, plunges, spending, drains
- Source: CNBC — https://cnbc.com/2026/10/22/meta-stock-q3-earnings-free-cash-flow.html
- Author: CJ Haddad
- Published: 2026-10-22T15:41:25+00:00
- Read time: 1 min
- Topics: meta, mark zuckerberg, artificial intelligence, capital expenditure, free cash flow, stock market, business, finance
## 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.
## Key takeaway

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.