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Fortune
Fortune
Sheryl Estrada

INSANE: S ps negative outlook on meta underscores the risks of the ai spending boom | Rare Historical Photos

The Meta headquarters in Menlo Park, California, US. (Credit: Getty Images)

Good morning. Following the recent third-quarter tech earnings reports, Wall Street is increasingly questioning the sustainability of the AI spending boom.

Late Friday, S&P Global revised its outlook on Meta to “negative” from “stable,” citing negative cash flow and uncertainty around its capital expenditure plans, Fortune’s Jason Ma reports. The agency affirmed Meta’s AA- credit rating but warned that the company’s leverage could exceed 1.0x as early as 2027.

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