Moody's Downgrades U.S. Credit; Meta Strategy Remains Steady

Published 8 hours agoMETA

Moody's Downgrades U.S. Credit; Meta Strategy Remains Steady

Moody's Investors Service has downgraded the U.S. sovereign credit rating from "Aaa" to "Aa1." Announced on May 16, 2025, this marks a significant milestone as it is the first time that all three major credit rating agencies—Moody's, S&P Global Ratings, and Fitch Ratings—have positioned the U.S. below the highest credit tier. The downgrade reflects Moody's concern over mounting government debt and increasing interest expenses, as reported by Reuters.

Meta Platforms Inc., amid these broader economic developments, is not specifically seeking new investable opportunities in direct response to the U.S. credit downgrade. Back in August 2024, the tech giant fortified its financial strategy by issuing $10.5 billion in a high-grade debt sale, designed to support its cash reserves. These funds are earmarked primarily for ventures in artificial intelligence and other strategic growth areas, according to Business Standard.

Currently, Meta's stock is trading at $640.34, witnessing a slight dip of 0.57% from its last close. The trading activity as of May 17, 2025, shows an intraday range with a high of $644.87 and a low of $626.39, and a trading volume of 18,518,972 shares. Meta continues to be a major player in the U.S. equity market, sustaining its commitment to long-term investments despite recent economic fluctuations.

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