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

Meta's stock price has taken a hit, falling 6% as the company's increased spending on artificial intelligence has pushed its free cash flow into negative territory. This decline is a cause for concern among investors, as it may indicate a larger issue with the company's financial health. The company's decision to invest heavily in AI has been a key factor in this decline, as it has put a significant strain on the company's finances. As a result, investors are becoming increasingly wary of the company's creditworthiness, as evidenced by the rise in credit default swap prices. This increase in credit concerns may have a ripple effect on the broader market, as investors become more cautious about investing in tech companies with high levels of debt. The impact of this decline will be closely watched by investors and analysts, as it may have significant implications for the company's future growth and profitability. Meta's financial health is a key indicator of the overall health of the tech industry, and this decline may be a sign of larger issues to come.