Meta stock sinks nearly 7% as AI spend pushes free cash flow negative

Meta's stock price has taken a hit, falling nearly 7% as the company's investments in artificial intelligence have pushed its free cash flow into negative territory. The social media giant's significant spending on AI has raised concerns among investors, who are now signaling growing credit concerns. As a result, prices for Meta's five-year credit default swaps have reached all-time highs. The company's financial stability is being questioned, and investors are becoming increasingly wary of its ability to generate cash. Meta's AI investments are a key part of its strategy, but they are also putting a strain on its finances. The company will need to find a way to balance its spending on AI with its need to generate cash and maintain its financial stability. The decline in Meta's stock price is a significant concern for investors, and it will be important to watch how the company navigates this challenging situation.