New York, Feb 1, 2026, 09:41 (EST) — Market closed.
- Meta ended the last session lower after a volatile week for AI-linked megacaps.
- Investors are weighing a sharp jump in AI infrastructure spending against fresh legal and regulatory headlines.
- Focus shifts to the next round of earnings and U.S. data once trading resumes Monday.
Meta Platforms (META) shares closed at $716.50 on Friday, down $21.53, or about 2.9%, after trading between $713.50 and $731.60. Volume was about 23.7 million shares.
U.S. markets are shut on Sunday, but the debate around Meta is still live. Investors are trying to decide whether they are buying an ad business that’s using AI to sharpen targeting — or an AI infrastructure buildout that happens to throw off a lot of ad cash.
That distinction matters now because Big Tech has started to trade on spending discipline again. When the tape is fragile, “strong” results are not always enough if the bill looks bigger than the upside.
Earlier this week, Meta lifted its 2026 capital expenditures, or capex — money spent on items such as data centers — to $115 billion to $135 billion, and forecast total 2026 expenses of $162 billion to $169 billion as it chases what it calls “superintelligence,” AI that can outperform humans. The company said advertising revenue rose 24% to $58.14 billion in the quarter ended Dec. 31, helping to send shares up 10% in extended trading, and projected first-quarter revenue of $53.5 billion to $56.5 billion, above Wall Street expectations. CEO Mark Zuckerberg called 2026 “a big year” on the analyst call, while CFO Susan Li warned capacity constraints would run through much of 2026. (Reuters)
Friday’s retreat landed in a broader risk-off session for U.S. stocks, with investors digesting megacap earnings and the nomination of former Fed governor Kevin Warsh to lead the Federal Reserve. Microsoft stayed in focus after a sharp drop a day earlier, adding to the uneasy tone around AI spending. (Reuters)
Another headline risk lands this week: Meta faces trial starting Monday in Santa Fe, where New Mexico Attorney General Raúl Torrez alleges the company exposed minors to sexual exploitation on Facebook, Instagram and WhatsApp. Meta denies the claims, and a spokesperson called the state’s arguments “sensationalist, irrelevant and distracting.” The company has also argued that the First Amendment and Section 230 — a U.S. law that often shields platforms from liability over user-generated content — protect it in the case. (Reuters)
In India, lawmaker L.S.K. Devarayalu has proposed legislation that would bar under-16s from holding social media accounts, putting another big user market into the debate over teen safety. Meta did not respond to Reuters’ request for comment on the bill and has said it supports parental oversight laws while warning bans could push teens toward “less safe, unregulated sites.” (Reuters)
But the bigger risk for the stock may be simpler: a capex plan that large can squeeze margins if ad growth cools or costs run ahead of what investors expect. Legal and policy fights can also drag attention and spending toward safety tools, compliance and courtrooms.
Traders come back Monday with a packed calendar: results from Alphabet and Amazon are due, and “the onus is going to be on them to deliver,” said Jim Baird of Plante Moran Financial Advisors. Beyond earnings, attention shifts to the U.S. jobs repo
rt due Feb. 6. (Reuters)
