Ⓜ️ Meta’s AI Spending Turns Cash Flow Negative
Meta’s free cash flow turned negative for the first time since its 2012 IPO year, reaching -$2.12B in Q3 versus +$10.63B a year ago. Capex hit $34.91B, above operating cash flow of $32.79B.
That puts 54% of revenue into servers and data centers. Meta raised the low end of its 2026 capex outlook to $135B, with no 2027 figure.
This is not a cash crunch. Revenue grew 26% and cash stood at $82.45B. Shares fell nearly 7%, and the 5-year CDS spread hit an all-time high. The market wants proof AI spending will pay off.
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Ⓜ️ Meta’s AI Spending Turns Cash Flow Negative Meta’s free cash flow turned negative for the first ti
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