Meta's Q3 AI capital expenditure rises to $34.91 billion, free cash flow turns negative
Meta's third-quarter revenue was $64.6 billion, up 26% year-over-year, but capital expenditure reached $34.91 billion, exceeding operating cash flow of $32.79 billion, resulting in negative free cash flow of $2.12 billion. The company raised its annual capital expenditure floor from $130 billion to $135 billion and its ceiling to $145 billion, and its stock fell more than 7% after the earnings call. In addition, a one-time expense of $9.89 billion, including a settlement over a teen mental health lawsuit, reduced quarterly operating profit by 37% to $13 billion.
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