NEW YORK, Jan 25, 2026, 09:44 (EST) — Market closed
- Meta shares ended Friday at $658.76, rising 1.7% and marking their third straight session of gains
- A fresh lawsuit challenges WhatsApp’s “end-to-end encryption” claims, but Meta dismisses it as frivolous
- Earnings are set for Jan. 28, while investors keep a close eye on AI spending plans and a series of regulatory actions linked to WhatsApp
Meta Platforms’ shares (META) closed Friday up 1.72% at $658.76, marking about a 9% rise over the last three sessions. After hours, the stock showed little movement.
Over the weekend, a global group of WhatsApp users filed a lawsuit against Meta in San Francisco federal court, accusing the company of accessing and storing private messages despite its encryption claims. Meta spokesperson Andy Stone dismissed the suit as “frivolous,” adding, “Any claim that people’s WhatsApp messages are not encrypted is categorically false and absurd.” (End-to-end encryption ensures only sender and receiver can read messages.) The Business Times
The timing couldn’t be more challenging. Investors face a jam-packed week of megacap earnings alongside a Federal Reserve meeting, while markets remain jittery over policy shifts and geopolitical tensions. “It’s been a little bit of a short but steep roller-coaster ride,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. Reuters
Meta plans to release its Q4 and full-year 2025 earnings after markets close on Wednesday, Jan. 28, followed by a conference call at 4:30 p.m. ET.
On Friday, Meta announced it will halt teenagers’ access to its current AI characters on all its apps globally, as it develops a revamped version tailored for teens. The company noted parental controls aren’t ready yet, and that the new teen AI features will follow the PG-13 movie rating framework.
UK regulator Ofcom launched an investigation into whether Meta’s disclosures about WhatsApp were complete and accurate in a market review. The probe focuses on the wholesale market for business bulk SMS messages, used for things like appointment reminders and delivery alerts.
In Brazil, a court has put on hold a CADE ruling that stopped Meta from limiting third-party AI tools on WhatsApp Business, the company confirmed. The antitrust agency is probing possible anticompetitive behavior linked to WhatsApp Business’s new policies following complaints from AI chatbot providers.
Meta’s shares climbed while U.S. stocks wrapped up a volatile week with mixed results on Friday. The S&P 500 nudged up, the Nasdaq saw a slight gain, but the Dow slipped as investors digested earnings reports alongside interest rate forecasts.
Meta investors are zeroing in on spending, especially capital expenditures—capex—used for long-term assets like data centers. This area has drawn attention as Meta ramps up its AI efforts, with shareholders demanding clearer returns. The company boosted the lower bound of its 2025 capex forecast to $70 billion-$72 billion and flagged a sharp increase in capital spending for 2026.
The bar isn’t set solely by Meta. Investors will also be parsing remarks from other megacaps like Microsoft, Apple, and Tesla, alongside the Fed’s policy move later this week, any of which could swiftly shift sentiment on richly valued growth names.
That dynamic works both ways. Should the WhatsApp lawsuit gain momentum, or regulators broaden scrutiny on messaging and teen safety, the narrative could quickly shift from earnings to legal troubles. On top of that, a higher-than-anticipated AI infrastructure cost or signs of weaker ad demand would weigh heavily.
U.S. markets were closed Sunday, so the first clear signal will arrive at Monday’s open. All eyes are on Meta’s earnings report for Jan. 28, especially the outlook on 2026 spending.
