S&P Cuts Meta Credit Outlook to Negative on AI Spending Pressure

S&P Global Ratings lowered Meta Platforms Inc.'s credit outlook to negative on Friday, citing strain on the company's balance sheet from elevated capital expenditures on artificial intelligence. "In our view, Meta's ability to monetize its AI investments is more limited than that of its peers," the agency said in a statement, adding it is unclear when spending will produce material revenue exceeding rising costs. The move comes as investors scrutinize whether Meta and other tech players can generate tangible returns from heavy AI outlays. The Nasdaq 100 fell 3.5% on Friday, briefly entering technical correction territory amid disappointing tech earnings.