Meta shares fell about 6% after the company reported negative free cash flow and raised the lower end of its full-year capital expenditure guidance. The spread on its five-year credit default swaps reached an all-time high, reflecting growing investor concerns about the company’s heavier spending on artificial intelligence. Meta now expects annual capital expenditures of $135 billion to $145 billion, compared with a previous range whose lower bound was $130 billion, while quarterly free cash flow was negative $2.12 billion. The company also plans to issue non-voting Class C common stock to preserve its founder-led structure and finance future growth. Third-quarter revenue rose 26% year over year to $64.60 billion, exceeding analysts’ $63.37 billion estimate, while earnings per share were reported at $3.83.
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