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Meta Faces Investor Scrutiny as AI Spending Soars, Driving Down Shares and Increasing Credit Risk

Meta Faces Investor Scrutiny as AI Spending Soars, Driving Down Shares and Increasing Credit Risk

Meta Credit Risk Gauge Hits Fresh High on AI Spending Plans
Meta Credit Risk Gauge Hits Fresh High on AI Spending Plans

A gauge of Meta Platforms Inc.’s credit risk surged to a fresh record Thursday and its bonds weakened, as plans to ramp up capital spending reignited fears that tech giants will issue more debt...

Meta shares slide 7% as AI spending push drives capex higher, free cash flow turns negative
Meta shares slide 7% as AI spending push drives capex higher, free cash flow turns negative

Meta shares were trading at $647.16, down $50.36, or 7.22%, in the latest quote shown in the supplied market data. The decline came after the company outlined plans to increase investment in...

Meta, AI Stocks Tumble As AI Spending Fears Reignite
Meta, AI Stocks Tumble As AI Spending Fears Reignite

Meta Platforms saw an initial rally after reporting earnings, before a sharp reversal. It's all about AI spending.

Meta's credit risk indicator hits record high on increased AI spending plan
Meta's credit risk indicator hits record high on increased AI spending plan

The cost of insuring Meta Platforms' debt against default ​touched an all-time high on Thursday, as investors grappled with concerns about its ‌plan to spend more on its AI build-out.

Meta shares slide, default insurance hits record as AI spending alarms investors
Meta shares slide, default insurance hits record as AI spending alarms investors

Meta Platforms shares fell more than 7% on Thursday as investors balked at another increase in its annual AI spending forecast and a plan to sell ​new stock to help pay for it.

Meta Earnings Show Increased A.I. Spending, Even as Cash Pressures Grow
Meta Earnings Show Increased A.I. Spending, Even as Cash Pressures Grow

The spending has hurt the Silicon Valley giant’s cash flow, which turned negative. Meta said it would issue a new class of stock to help it raise more money.

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