New York, Jan 31, 2026, 09:40 (ET) — Market closed
- Meta shares slipped on Friday, erasing some of the strong gains seen after earnings.
- A child-exploitation lawsuit from New Mexico is set to go before a jury on Monday, targeting the company’s leadership.
- Next week, attention turns to Big Tech earnings and the U.S. jobs report slated for Feb. 6.
Shares of Meta Platforms (META) fell roughly 2.9% Friday, closing at $716.50. The drop comes as the company faces a jury trial set to begin next week in New Mexico.
Bulls face a tricky moment. Investors are processing Meta’s plans to ramp up spending on AI infrastructure, while the company insists its ad business is footing the bill.
U.S. markets are closed for the weekend, shifting focus to a New Mexico legal case and the upcoming Big Tech earnings reports. Alphabet and Amazon.com are next up, with results that might recalibrate forecasts around AI investments and profits.
New Mexico Attorney General Raúl Torrez has accused Meta of enabling sexual exploitation of children and teens—and profiting from it. Reuters reports this is the first case against the company to go before a jury. Meta pushes back, citing the First Amendment and Section 230, the legal protections shielding platforms from liability over user content. A Meta spokesperson dismissed the state’s claims as “sensationalist, irrelevant and distracting.” (Reuters)
The stock’s week highlighted just how fast sentiment can shift. Meta climbed roughly 10% on Thursday, while Microsoft dropped by about the same margin. This split highlighted investors’ appetite for immediate growth and their impatience with spending that doesn’t pay off quickly. “All else equal, the market would typically be concerned,” said John Belton, portfolio manager at Gabelli Funds, referring to Meta’s Q1 revenue forecast. (Reuters)
Meta projected hefty spending for 2026, with capital expenditures—covering data centers, servers, and related equipment—expected to hit between $115 billion and $135 billion. Total expenses are forecasted at $162 billion to $169 billion. Mark Zuckerberg described the year ahead as “a big year” focused on “personal superintelligence.” Meanwhile, CFO Susan Li cautioned that capacity constraints might persist through much of 2026. (Reuters)
Wall Street remains convinced the capex debate is far from settled. “Capex spending on building out AI infrastructure will not see any letup,” said Sid Vaidya, chief investment strategist at TD Wealth, in a note looking ahead to next week. He highlighted that spending plans among the “hyperscalers” will face intense scrutiny. (Reuters)
This is crucial for Meta since ads remain its main revenue driver, and the stock trades on the assumption that AI-driven ad growth will continue outpacing rising costs. Even a minor slip could sting, especially with expenses climbing.
Court risk is also a factor. A contentious trial might reveal internal documents, and a verdict or imposed remedies that require product redesign could heighten uncertainty—especially as regulators and lawmakers are already scrutinizing social media’s effects on minors.
Investors turn their attention to New Mexico proceedings kicking off Monday, Feb. 2, while Alphabet and Amazon are set to reveal AI spending plans after the close on Feb. 4 and Feb. 5, respectively. The crucial macro update arrives Friday with the Bureau of Labor Statistics releasing the January jobs report at 8:30 a.m. ET on Feb. 6. (Nasdaq)
