Meta shares slumped roughly 6% on Thursday as the social media giant showed negative free cash flow in its third-quarter earnings and raised the floor of its full-year capital expenditures.
The spread on the social media giant's five-year credit default swaps reached all-time highs on Thursday, a signal of growing credit concerns from investors as the company leans deeper into its artificial intelligence spending plans.
Meta said it expects its full-year capex to range from $135 billion to $145 billion, raising the bottom of the range from a previous $130 billion to $145 billion.
Free cash flow came in at a negative $2.12 billion during the quarter.
The company revealed Wednesday that it would create a new class of nonvoting Class C common stock during its earnings release, meant to maintain its "founder-led structure" and "provide Meta the ability to finance its growth."