Meta gains 2.15% despite weaker credit outlook

Meta Platforms shares rose 2.15% to $619.76 on Nov. 3, a Benzinga article citing Benzinga Pro data showed, as mega-cap growth stocks rebounded.

The gain contrasted with S&P Global Ratings’ negative outlook on Meta’s AA- rating and its forecast that capital spending will reach about $140 billion in 2026 and exceed $225 billion in 2027.

That 2027 capital-spending estimate is at least $85 billion higher than S&P’s 2026 forecast, a rise of more than 60%, according to Atlas360 calculations. The increase matters for investors because AI infrastructure spending is testing how much debt and equity financing Meta can absorb while preserving cash flow.

The rebound extended beyond Meta. Microsoft also rose, while the Nasdaq gained 0.90%, the S&P 500 advanced 0.43% and communication-services stocks climbed about 1%, the article said.

Meta is seeking at least $15 billion through a U.S. dollar bond offering, the article said, citing Bloomberg. The borrowing is part of a broader funding effort expected to total at least $20 billion, and Meta is also preparing its first euro-denominated bond sale.

The proposed 30-year bonds were discussed at a yield premium of roughly 250 basis points over Treasuries. That spread, a measure of extra compensation investors demand over U.S. government debt, was about 90 basis points wider than comparable Meta bonds sold in April.

The company is raising capital as it expands artificial-intelligence infrastructure and develops products including Muse Wonder. The same report listed a $25 billion common-stock offering, $12.5 billion raised through preferred shares and plans to sell as much as $60 billion through an at-the-market equity program.

S&P lowered its outlook on Meta’s AA- rating to negative, citing rising leverage and uncertainty over how long elevated capital spending and negative free operating cash flow may continue. Free operating cash flow is cash generated after operating costs and capital investment.

S&P also said leverage could rise above 1.0 times next year. Meta disagreed with the assessment, and spokesperson Kamran Mumtaz said the company sees significant product and business opportunities and believes its credit profile remains very strong.

Meta has disclosed more than $800 billion in future spending commitments, with nearly half tied to leases that have not yet started, largely for data centers and energy infrastructure. The disclosed commitments are more than three times S&P’s expected 2027 capital spending.

Credit and equity investors are reading the spending cycle differently. Impax Asset Management fixed-income CIO Ross Pamphilon said investors do not need to rush into Meta’s new bonds, citing weakness in recently issued hyperscaler debt and expectations that technology spending may not peak until 2027 or 2028.

Blue Line Capital founder and president Bill Baruch cut Meta to 1.5% of his portfolio from 2.5%. He cited elevated capital spending, negative free cash flow and weak stock follow-through after the Muse launch, while pointing to expected 2026 capital expenditure of $135 billion to $145 billion and estimates approaching $200 billion in 2027.

Ritholtz Wealth Management CEO Josh Brown also took a cautious intermediate-term view and removed Meta from his "Best Stocks in the Market" list. Brown said he would want the shares to regain their 50-day moving average near $664 before becoming more constructive.

Equity analysts remained positive in aggregate. Meta carried a Buy consensus rating and an average price forecast of $860.41 across 50 analysts, with recent targets of $860 from Cantor Fitzgerald, $845 from BofA Securities and $905 from KeyBanc.

Meta is also a significant holding in several exchange-traded funds. The article listed weights of 9.26% in the Invesco AI and Next Gen Software ETF, 8.82% in the Natixis Loomis Sayles Focused Growth ETF and 8.78% in the Fidelity Disruptive Communications ETF.

Source: Benzinga article and Benzinga Pro data, Nov. 3, 2026