Meta META shares fell 3% on Tuesday as a cautious mood across Wall Street, due to higher oil prices and rising Treasury yields, weighed on technology stocks, while investors also turned their attention to a major child safety trial that could expose the company to significant financial and regulatory risks. Meta's stock has already fallen about 16% this year, with much of the pressure coming from concerns over the company's enormous spending on artificial intelligence infrastructure.
Meta Platforms (NASDAQ:META | META Price Prediction) stock is down 4% to $548.14 in Tuesday morning trading as a 29-state youth-harm trial opens in Oakland.
Meta Platforms (META) has underperformed peers, dropping ~27% YTD, but I view the negative repricing as excessive. Despite recent margin compression and EPS miss, one-off legal and severance charges explain much of the weakness; margin expansion is expected as these costs subside. AI-driven CAPEX is converting OPEX into capitalized assets, supporting future EBIT margin growth and monetization of WhatsApp and Family of Apps.
Have you been to Friendster lately? Or how about MySpace?
Ruiyu Li, a research scientist at Meta, makes over $250k and focuses on AI and machine learning. She said working in eight AI labs in college and grad school allowed her to publish research.
A federal trial against Meta alleging the tech giant contributed to a mental health crisis in young people opens today.
The problem with comparing across big tech CEOs is that they're often running pretty foundationally different businesses.
Attorneys general from California, Colorado, Kentucky and New Jersey allege Meta misled the public about the risks its platforms pose to children.
As the afternoon noise subsides and we head into the second half of the session, catch up on what's driving the conversation.
Opening arguments in a landmark youth-safety trial against Meta Platforms (NASDAQ:META | META Price Prediction) begin Tuesday, August 18, 2026, in federal court in Oakland before Judge Yvonne Gonzalez Rogers, capping a consolidated action brought by 29 state attorneys general originally filed in 2023.
Less than two weeks after a loss in New Mexico, Meta faces a much bigger legal test in a case being co-led by California's attorney general. Opening arguments in AG Rob Bonta's case against Meta begin on Tuesday, as more states try to force the social media company to make design changes to its apps.
Amazon (NASDAQ: AMZN | AMZN Price Prediction) and Meta (NASDAQ: META) both reported second-quarter results in late July, revealing the same pressure: AI infrastructure is consuming cash.