Meta stock sinks 6% as AI spend pushes free cash flow negative

Meta shares fell about 6% after the company reported negative free cash flow of $2.12 billion in Q3 and raised the floor of its full-year capex guidance to $135 billion from $130 billion, with a range of $135–145 billion. Revenue rose 26% to $64.6 billion, and spreads on Meta's five-year credit default swaps hit all-time highs. Meta also unveiled a new class of nonvoting Class C stock.

• Q3 free cash flow came in at negative $2.12 billion
• Full-year capex guidance raised to $135–145 billion
• Revenue grew 26% to $64.6 billion vs. $63.37 billion expected
• Five-year credit default swap spreads hit all-time highs