NEW YORK, January 2, 2026, 4:31 PM ET — After-hours
Meta Platforms (META) shares fell $9.47, or 1.4%, to $650.41 in after-hours trading on Friday. The stock traded between $643.58 and $666.10 during the regular session. After-hours trading runs after the 4 p.m. close and can move faster on lighter volume.
The Facebook and Instagram owner is back in the crosshairs over scam advertising, and investors are weighing whether tighter rules follow. Any change that blocks paying advertisers or lifts compliance costs would hit the engine that funds Meta’s growth spending.
Reuters, citing internal documents, reported that Meta drafted a global “playbook” to manage pressure from regulators, including efforts in Japan to make scam ads harder to find in its public Ad Library. The report said policymakers are pushing for “universal advertiser verification” — requiring every advertiser to pass an identity check before ads can run — and Meta’s documents estimated that would cost about $2 billion and could ultimately cut revenue by up to 4.8%; Alphabet’s Google has said it has verified more than 90% of advertisers. A European Commission spokesperson said the bloc sent Meta a formal request for information on scam-ad risks and had “doubts about compliance,” while Meta spokesperson Andy Stone said there was nothing misleading about removing scam ads from the library and pointed to a 50% decline in user reports of scams over the past year. 1
The broader market finished mixed on the first trading day of 2026, keeping a lid on big-tech sentiment. The Dow rose 0.67%, while the S&P 500 added 0.18% and the Nasdaq slipped 0.02%, according to preliminary data. “Stocks trade expensive on 18 of 20 measures, and we see elevated risks to the index level in the near term,” said Savita Subramanian, Bank of America’s equity and quant strategist, in a note. 2
Meta’s advertising business makes the stock particularly sensitive to policy risk, because paid ads are its main profit driver. Compliance steps that slow the flow of new advertisers can show up quickly in revenue growth.
For investors, the question is whether regulators seek piecemeal fixes or broader identity checks across markets. Verification can deter bad actors, but it also adds friction for legitimate advertisers and raises costs for platforms.
That backdrop leaves traders balancing two forces that can pull in opposite directions: stronger enforcement can reduce fraud and improve user trust, while stricter onboarding can weigh on ad volumes and margins. The market is also watching how quickly platforms can show results regulators will accept.
Meta’s drop leaves it closer to the lower end of Friday’s range than the day’s highs. Momentum-focused traders often watch recent highs and lows as near-term resistance and support.
Investors will also watch for follow-on moves from European and U.S. authorities, including requests for data, new rulemaking, or tougher enforcement tied to scam losses. Regulatory timelines can be hard to predict, but they can change the risk premium investors demand.
The broader market backdrop may shape the next leg for megacap tech as much as company headlines. Growth stocks such as Meta tend to react sharply to shifts in interest-rate expectations, which influence how investors value future earnings.
After-hours moves can be sharper than regular-session swings because fewer shares change hands. Traders will be watching whether Meta’s dip holds into the next session or reverses as liquidity returns.
For now, the company’s approach to scam ads and advertiser identity checks is back at the center of the story for META shareholders. Early January trading will test whether regulatory headlines or the macro tape sets the tone.
