Meta Reports Negative Cash Flow, Stock Drops 8% — SkimNews

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- Meta reported negative free cash flow of $2.12 billion in Q3, marking a sharp financial shift as it accelerates AI spending.
- Meta raised its full-year capital expenditure guidance to a range of $135 billion–$145 billion, up from a prior $130 billion floor.
- Meta announced plans to create a new class of nonvoting Class C common stock to preserve founder control and support growth financing.
- Mark Zuckerberg could leave California if the state's proposed 'Wealth Tax' passes, potentially triggering a multi-billion-dollar tax liability on his stock holdings.
- Meta's revenue rose 26% year-over-year to $64.60 billion in Q3, exceeding analyst expectations of $63.37 billion.
- The spread on Meta's five-year credit default swaps hit an all-time high, reflecting growing investor concerns about credit risk.
Why it matters: Meta’s cash outflow and soaring capex signal a high-stakes bet on AI that’s straining its balance sheet; while revenue growth remains strong, the market is pricing in elevated risk as debt protection costs surge and founder control mechanisms are reinforced.
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