S&P Global shifts Meta credit outlook negative after Nasdaq dip
S&P Global just shifted Meta's credit outlook to negative, mainly because the company is pouring huge amounts into artificial intelligence but isn't making as much money from it as some rivals.
This comes right after a 3.5% dip in the Nasdaq-100, thanks to a rough week for tech stocks.
Meta to spend $225B on AI
Meta's spending on things like data centers and energy is set to jump from $140 billion this year to over $225 billion by 2027, with long-term commitments reaching more than $800 billion.
Even with Wall Street raising eyebrows, CFO Susan Li says these AI investments are key for future growth.
To help balance the books, Meta is exploring fresh revenue streams: think AI-powered tools like Muse models, personal digital assistants, and possibly even launching its own cloud business.