Meta's AI Spending Turns Free Cash Flow Negative as It Plans New Stock Sale

Summary

Meta's latest earnings showed increased spending on artificial intelligence, and that spending pushed the company's cash flow negative. Meta said it would issue a new class of stock to help it raise more money. CNBC reported that Meta's stock fell nearly 7% as AI spending pushed free cash flow negative, and that prices for the company's five-year credit default swaps reached all-time highs as investors signaled growing credit concerns.

Timeline

1. New York Times

   21 Oct 2026, 21:18 UTCSource ↗

   The New York Times reports that Meta's earnings showed increased A.I. spending, which hurt the company's cash flow and turned it negative, and that Meta said it would issue a new class of stock to help raise more money.

2. CNBC

   22 Oct 2026, 20:03 UTCSource ↗

   CNBC reports that Meta stock sank nearly 7% as AI spending pushed its free cash flow negative, and that prices for its five-year credit default swaps are reaching all-time highs as investors signal growing credit concerns.