Meta Shares Drop 6% After Negative Cash Flow

Meta shares fell 6% this Thursday. The decline follows the company's report of negative free cash flow during the third quarter.

The financial results were pressured by rising capital expenditures. The company raised its annual investment guidance to a range between 135 billion and 145 billion dollars.

Free cash flow reached a negative level of 2.12 billion dollars for the period. Simultaneously, the company's five-year credit default swaps hit record highs.

The market is showing caution regarding the financing strategy adopted by the tech giant. Meta plans to create a new class of non-voting shares to maintain its current control structure.

Regulatory filings mention that CEO Mark Zuckerberg considered leaving California due to potential tax changes. The new share structure was presented as a way to ensure the continuity of growth plans.

Rising corporate spending in the tech sector may increase risk aversion toward volatile assets. This scenario tends to strengthen the demand for dollar liquidity and impact the valuation of digital assets like Bitcoin.