
AI bubbleSBS 'is an AI shock coming' report passes 460,000 views as S&P cuts Meta's outlook to negative and Intel falls 45% in October
An SBS News 8 report posted Nov. 1, 'Meta spends but doesn't earn... is an AI shock coming?', has passed 460,000 views. It says Alphabet and Amazon missed third-quarter revenue estimates and Intel fell 45% in October. S&P changed Meta's credit outlook from stable to negative.
S&P said Meta's ability to earn from AI investment is more limited than rivals' and its multi-year spending plan is very aggressive. Meta spent $2.1 billion more on investment than it earned from operations in the third quarter, its first negative free cash flow since its 2012 listing, yet plans up to $145 billion in capex this year.
Comments targeted the title. 'Upvote if you clicked thinking "AI shock"' got 592 likes, followed by 'Tomorrow is the return of last week's postponed Black Monday' (70).