Meta Stock (META) Weekend Update: New Regulation Headlines, Instagram Teen Focus, and AI Spending Debate Ahead of Monday’s Open

NEW YORK, Dec. 27, 2025, 9:50 a.m. ET — Market closed

Meta Platforms, Inc. (NASDAQ: META) heads into the final week of 2025 with investors weighing a familiar mix of forces: fresh scrutiny over teen safety and “addictive” product design, a renewed push to monetize AI-driven engagement, and the lingering question of whether Meta’s massive AI infrastructure spending will pay off soon enough to satisfy Wall Street.

With U.S. markets closed for the weekend, the next price discovery for Meta stock won’t come until Monday’s opening bell. For now, META’s last trade came during a light, post-Christmas session on Friday, when major U.S. stock indexes finished slightly lower. ^[1]

Meta stock price today: where shares last closed

Meta shares last closed at $663.29, down 0.66% on the day.

The broader market backdrop was subdued: the S&P 500, Dow, and Nasdaq all slipped by less than 0.1% on Friday in what the Associated Press described as light trading as many institutional players remain mostly sidelined into year-end. ^[2]

That holiday-thin liquidity matters for large-cap growth stocks like Meta. With fewer big orders in the market, headlines can have an outsized impact on price—especially when those headlines touch on regulation, platform design, or AI monetization, which are central to Meta’s long-term margin story.

The most important Meta headlines in the last 24–48 hours

1) New York moves toward warning labels for “addictive” social media features

A major new regulatory development landed Friday: New York Gov. Kathy Hochul announced a law requiring warning labels on certain social-media platforms that use features such as infinite scrolling, auto-play, and algorithmic feeds, citing potential mental-health harm to young users. The measure allows New York’s attorney general to seek civil penalties of up to $5,000 per violation, and it applies to conduct occurring partly or wholly in New York (with limits tied to where the user is physically located). ^[3]

Meta was among the companies Reuters listed as being contacted for comment, though spokespersons for the companies cited did not immediately respond in Reuters’ report. ^[4]

Why investors care: even when penalties are not immediately material relative to Meta’s scale, regulation aimed at “engagement-driving” product mechanics can create longer-term risk to time-spent metrics, ad impressions, compliance costs, and product roadmaps—especially if other states follow with similar frameworks. Reuters also pointed to a growing global focus on teen mental health tied to social media. ^[5]

2) Leaked documents highlight Instagram’s internal teen-growth push

On Friday, The Washington Post reported that leaked internal documents show Instagram pursued a multi-year strategy to win back teen users, including product tweaks, marketing, and internal initiatives—while simultaneously facing lawsuits and criticism alleging social harm. The report said Instagram chief Adam Mosseri pushed teams to prioritize teens (especially in developed markets) even ahead of building Threads. ^[6]

The Post also reported Meta’s position that safety initiatives are not in conflict with the company’s teen-focused efforts; a company spokesperson said Meta has released safety features such as “Teen Accounts,” even when those steps reduced usage, describing it as “the right thing.” ^[7]

Why investors care: teen engagement is strategically important for the long runway of “social graph” platforms. But teen-focused engagement strategies are increasingly intertwined with legal and regulatory risk—especially at the state level in the U.S.—which can drive uncertainty around product design and future monetization.

3) Europe’s AI and competition scrutiny remains a live overhang

While slightly older than the strict 48-hour window, a notable item still hovering over the stock is European competition scrutiny tied to AI distribution in messaging. Earlier this week, Italy’s antitrust authority ordered Meta to suspend WhatsApp contractual terms that could exclude rival AI chatbots, as it investigates Meta for suspected abuse of a dominant position; Meta said it would appeal. ^[8]

Why investors care: WhatsApp and business messaging monetization are increasingly part of the forward bull case for Meta. Any constraint on how Meta bundles, prioritizes, or distributes AI assistants inside WhatsApp could affect the pace (and economics) of that monetization.

The bull case spotlight: AI-driven ads and engagement — with a capex catch

A key theme across this week’s Meta coverage is that AI is increasingly the engine behind the company’s core ad machine—improving content recommendations, ranking, and conversions—while also driving a higher spending profile.

A Zacks analysis published Friday on Nasdaq.com highlighted Meta’s push to infuse AI into content recommendations and ad ranking, pointing to:

Meta AI used by more than one billion people
a reported $60 billion annual run rate for Meta’s “end-to-end AI-powered ad tools”
and a 10% year-over-year increase in average price per ad in Q3 2025, attributed in part to improved ad performance and demand ^[9]

But the same analysis underscored the investment burden: Meta expects 2025 capex of $70–$72 billion, with “significant” growth in 2026 capex in dollar terms, as it expands AI research, models, and infrastructure. ^[10]

That capex debate has been central to the stock’s “push-pull” narrative in the back half of 2025: investors want AI upside, but they also want confidence that spending converts into durable margins and earnings power.

Forecasts and analysis: what strategists say could drive META next

“Opportunistic buy” framing: expectations reset, catalysts ahead

In a recent analyst-focused write-up, TipRanks highlighted Colin Sebastian of Robert W. Baird reiterating an Outperform stance while trimming a price target to $815 (from $820). The piece characterized the setup as an “opportunistic buy” after expectations cooled, with investor focus turning toward guidance, margins, and AI product cadence. ^[11]

TipRanks’ article also summarized what that camp is watching next: Meta’s Q1 guidance and margin outlook, updates to Meta AI, and the company’s next Llama model, plus continued progress monetizing WhatsApp and Threads and broader adoption of Advantage+ ad tooling. ^[12]

TipRanks also reported a “Strong Buy” consensus view in its tracking data, alongside an average price target figure cited in the article. ^[13]

“Triggers for the next rally”: ads, messaging monetization, and wearables

A fresh Saturday analysis from Trefis laid out three potential catalysts it believes could “ignite” the next rally in Meta stock:

Sustained 20%+ annual advertising revenue growth supported by AI-driven performance improvements
Expanded monetization of messaging platforms (including “Click-to-WhatsApp” ads and the development of paid AI agents for business messaging)
A Reality Labs pivot emphasizing “wearable AI” and improved spending discipline ^[14]

Trefis also flagged risks that remain front-of-mind for some investors—particularly regulatory threats—underscoring why META can be volatile even when fundamentals are strong. ^[15]

The “value” angle: forward P/E and ad re-acceleration hopes

Another widely circulated Friday piece argued Meta is among the cheaper-looking mega-cap tech names on a forward earnings basis, citing a 22.1x forward P/E and pointing to expectations for better ad demand and AI-improved ad performance as potential drivers into 2026. ^[16]

Investors should treat any single-site valuation framing with caution, but the broader takeaway is consistent with this year’s debate: Meta’s multiple tends to expand when the market believes AI spending is translating into measurable ad performance and monetization, and compress when spending rises faster than clarity on returns.

What investors should watch before Monday’s session

With markets closed now, the question becomes: what could move Meta stock when trading resumes?

1) Monday morning macro calendar: data that can shift risk appetite

Even when a release isn’t “about” Meta, growth stocks can react to interest-rate expectations and broad risk sentiment. On Monday, Dec. 29, the New York Fed’s economic indicators calendar lists several releases/events (all ET), including Advance International Trade in Goods (8:30 a.m.), NAR Pending Home Sales Index (10:00 a.m.), and the Dallas Fed Manufacturing Survey (10:30 a.m.). ^[17]

2) Year-end holiday trading conditions and liquidity

The market is heading into the last stretch of holiday trading, when liquidity can be patchy and moves can be sharper. Investopedia reports that U.S. stock markets have a full trading day on New Year’s Eve (Dec. 31) and will be closed on New Year’s Day (Jan. 1, 2026), with bond markets closing early on Dec. 31. ^[18]

For investors, this matters because lower liquidity can amplify reactions to headlines—particularly regulatory and platform-risk stories like those that surfaced this week.

3) Watch the regulatory drumbeat, not just product launches

This week’s New York warning-label law and the Post’s reporting on Instagram’s teen-growth strategy both point to a central 2026 risk: regulation is increasingly focused on engagement mechanics (feeds, autoplay, infinite scroll) and teen usage outcomes. ^[19]

If additional states or international regulators move in similar directions, Meta could face a more complex compliance environment that influences product design—and, by extension, time spent and ad inventory.

4) Keep an eye on the next major corporate catalyst window

Meta’s next earnings date varies across tracking services. TipRanks lists a Feb. 4, 2026 report date (while also noting dates can change), while Wall Street Horizon shows a Jan. 28, 2026 date as “unconfirmed,” based on historical reporting trends. ^[20]

What matters for the stock is less the exact day right now and more the likely narrative focus: AI capex trajectory, margin durability, and whether AI-driven ad tools continue to push pricing and performance. ^[21]

Bottom line for META investors this weekend

Meta stock enters Monday’s session with a two-sided setup:

Supportive tailwinds: AI-driven improvements to ad ranking, engagement, and monetization tools continue to be cited as fundamental positives, alongside growing business messaging “threads” and Meta AI adoption. ^[22]
Real risks: regulatory pressure on teen safety and addictive design features is intensifying, and messaging/AI distribution is drawing scrutiny in Europe—both of which can shape product strategy and sentiment. ^[23]

With markets closed and year-end liquidity conditions in play, investors may want to head into Monday with a clear plan: what would change your thesis on AI returns versus AI spend, and what regulatory headline would meaningfully alter your view on engagement durability?

This article is for informational purposes only and is not investment advice.