Shares in Meta fell by roughly 7 per cent on Thursday after the company reported negative free cash flow for the third quarter and raised the lower end of its forecast for capital spending, CNBC reports.
Meta now expects full-year capital expenditure of $135bn to $145bn, up from a previous floor of $130bn, as it pours money into artificial intelligence. Free cash flow was minus $2.12bn for the quarter, and the cost of insuring Meta's debt through five-year credit default swaps reached a record high.
Revenue rose 26 per cent year on year to $64.6bn, ahead of analysts' expectations. The company's filing also said Mark Zuckerberg could have left California if a proposed wealth tax passed, but was persuaded to stay by its new non-voting share plan.
Source: CNBC
