S&P sees $71B Meta cash gap over AI spending

S&P Global Ratings cut its outlook on Meta to negative from stable on the 30th of October 2026, Reuters reported. It cited AI spending and cash flow.

The same day, Apple passed Nvidia as the world's most valuable company, Bloomberg and Investing.com reported. Apple was worth 5.03 trillion dollars and Nvidia 4.93 trillion after a 4.2% fall, Investing.com said.

S&P sees Meta's cash flow 39 billion dollars below zero in 2026

S&P sees Meta's free operating cash flow below zero by 39 billion dollars in 2026, Reuters reported. That is the cash left after costs and investment.

S&P sees a gap of 71 billion dollars in 2027.

Meta plans to spend 135 to 145 billion dollars a year on data centres and chips, Reuters said. Its free cash flow was minus 2.12 billion dollars last quarter.

Below we break down what could cost Meta its AA- rating

Meta keeps its AA- rating for now, Reuters reported. S&P could lower it if leverage, debt measured against yearly earnings, stays above 1.0 times.

Leverage was 0.1 times in 2025 and could pass 1.0 by 2027, S&P said. The two forecast gaps add up to 110 billion dollars over 2026 and 2027, by our arithmetic.

"We respectfully disagree with S&P's assertion about Meta's AI monetization capabilities," a Meta spokesperson said, according to Reuters.

Apple leads Nvidia by about 100 billion dollars

Apple shares slipped 1.2% on the 30th of October, Investing.com reported. Investors moved to firms that spend less on AI, the outlet said.

Apple last led Nvidia briefly in late July. The gap is about 100 billion dollars, by our arithmetic.

Alphabet is down 18.6% in October and the Nasdaq fell 2.9%

Alphabet shares were down 18.6% for the month, Investing.com reported. Its third quarter free cash flow was minus 9.1 billion dollars, the outlet said.

The Nasdaq index fell 2.9% on the 30th of October, Reuters said. An X post said 1.8 trillion dollars left US stocks that day, and no named outlet confirmed it.

Key facts

S&P revised Meta's outlook to negative on the 30th of October 2026, rating AA- kept.

S&P sees Meta's free operating cash flow at minus 39 billion dollars in 2026 and minus 71 billion in 2027.

Apple, at 5.03 trillion dollars, passed Nvidia at 4.93 trillion the same day.