Meta Stock Fell 15% in October, Then S&P Forecasts a $71 Billion Cash Flow Deficit. Here’s Where the Stock Could Go by 2030

The UK's Competition and Markets Authority (CMA) launched an investigation into Meta over concerns that its terms for businesses using Facebook and Instagram may abuse a dominant position. The terms could allow Meta to use content from publishers' websites for its AI products without consent. Meta paused the rollout of these terms but the investigation continues. The CMA will assess if Meta holds a dominant position and if the terms are exploitative.

S&P Global Ratings revised Meta Platforms' credit outlook to negative from stable, citing high AI spending and rising leverage. The agency doubts when capex will generate material revenue. Meta's capex is forecasted to reach $140B this year and $225B by 2027, with leverage climbing above 1.0 times in 2027. Meta disclosed $800B in future spending, mostly for data centers and energy infrastructure.

Meta (META) plans to sell $95–97.5B in shares to fund AI infrastructure, including a $25B Class A share sale at $625. S&P cut META's outlook to negative due to high AI-driven capex and projected free cash flow shortfalls. Nvidia will invest $3B in META equity. META's stock is down over 4% for the week.

Meta settled with a second teen plaintiff in a social media addiction case, leaving Snap as the sole defendant in an upcoming trial. The plaintiffs allege Snap designed Snapchat to be addictive, causing mental and physical harm. Snap disputes these claims. Meta and other defendants previously settled similar cases, with terms undisclosed. The trial begins Nov. 4, with over 1,600 plaintiffs involved.

S&P Global Ratings changed Meta's (META) outlook to negative due to concerns over its AI investment spending and future cash flow, though its AA− credit rating remains unchanged. Meta forecasts $135-145B in capital expenditure for 2026, with Q3 operating cash flow at $32.79B and free cash flow at -$2.12B. Meta disputes S&P's concerns, citing potential AI revenue growth.

Nvidia will invest $3 billion in Meta's equity offering as part of an expanded AI partnership, focusing on Meta's Muse AI assistant. The deal aims to align chip supply with Meta's AI infrastructure needs, though financial details beyond the investment were not disclosed. Both companies declined further comment.