Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) is facing a lawsuit from 26 employees who allege the company used artificial intelligence tools and automated workplace metrics to select workers for mass layoffs, with the plaintiffs claiming the process disproportionately affected employees who had taken protected medical, parental or family leave. The lawsuit, filed in federal court in Oakland, California, claims Meta relied on AI-assisted performance rankings, activity tracking data and internal “AI token usage” dashboards to evaluate employees during a workforce reduction process.
Meta Platforms (META) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
This tech failed to account for workers who were out on valid medical leave – and “in effect penalized the employees for exercising their legal rights to these leaves,” according to the suit.
Twenty-six employees sued Meta, saying it used AI systems to help select workers for layoffs. The lawsuit says AI usage metrics penalized workers who took medical, parental, or disability leave.
META's premium valuation and soaring AI spending weigh on near-term upside despite strong ad growth and AI engagement.
In a recent interview, Instagram head Adam Mosseri said he can see a time in the future, perhaps only a year or two, when putting limits on Meta employees' AI token spend will become necessary.
My answer to the title: not yet, and maybe never the way bulls hope. Selling compute is unlikely to match the roughly 52% operating margin of Meta's Family of Apps. Two things flipped it in July: a Bloomberg report on a Meta cloud business, and a paid model API. Suddenly, the capex looked rentable, not dead money. What I need on the 29th of July is proof that Meta Compute actually exists. Named customers would be very welcome.
On July 13, Meta said it would put more than $50 billion into a single Louisiana data center, more than doubling its planned capacity to 5 gigawatts. Twelve days earlier, Bloomberg reported that the same company was developing plans to sell its "excess" AI computing capacity to outsiders.
In the most recent trading session, Meta Platforms (META) closed at $656.73, indicating a -1.86% shift from the previous trading day.
I keep buying Meta, and the reason is embarrassingly simple: it is the only trillion-dollar AI story I can find where the buyer of the compute and the seller of the ads are the same company.
After being down and out for several months, shares of Magnificent Seven giant Meta Platforms NASDAQ: META are starting to get their groove back. The stock recently popped 8.8% on reports that Meta will enter the cloud computing business, selling excess capacity to third parties.
$125 billion to $145 billion. That is what Meta Platforms (NASDAQ:META | META Price Prediction) now expects to spend on capital expenditures in 2026, raised from a prior range of $120 to $135 billion when the company reported first-quarter results on April 29, 2026.