New York, February 2, 2026, 18:11 ET — After-hours update
- META shares dipped post-close, with investors digesting the impact of legal challenges and the company’s hefty AI investment plans.
- A New Mexico case involving child-safety allegations is now entering jury selection, raising short-term headline risk.
- Traders remain focused on Washington’s funding showdown, especially after a shutdown threw a wrench into key economic data releases.
Meta Platforms, Inc. shares dropped 1.4% in after-hours on Monday, slipping $10.08 to close at $706.41. During the session, the stock fluctuated between $703.54 and $721.05.
The decline followed the start of jury selection Monday in a New Mexico civil case targeting the owner of Facebook, Instagram, and WhatsApp. The lawsuit alleges Meta facilitated child sexual exploitation and demands action under state consumer-protection and public-nuisance statutes; Meta denies the allegations.
Costs remain a major concern. In its earnings report last week, Meta projected 2026 capital expenditures—covering data centers, servers, and other infrastructure—between $115 billion and $135 billion. Total expenses are expected to hit $162 billion to $169 billion. CEO Mark Zuckerberg highlighted the company’s focus on “advancing personal superintelligence” in 2026. Meta
The broader market climbed Monday, but Meta stood out as a drag in the big tech group. The S&P 500 added 0.5%, while the Nasdaq Composite ticked up 0.6%, based on closing data.
In other moves within the sector, Alphabet Inc’s shares climbed 1.7%, but Snap Inc dropped 3.8%.
The risk lies in the clash between mounting legal pressure and rising costs. In its annual filing with the U.S. Securities and Exchange Commission, Meta flagged a surge in plaintiffs attempting to sidestep Section 230 — the law that usually protects online platforms from liability for user content — and cautioned that the damages and penalties pursued in these cases could reach “hundreds of billions of dollars.” SEC
Macro noise isn’t making things easier. The U.S. Labor Department warned a partial shutdown would push back the January employment report and other labor data after lawmakers couldn’t agree on funding over the weekend. The U.S. House of Representatives was set to consider the bill Monday, with a final vote expected Tuesday.
Some investors say the current valuation already factors in significant spending concerns. “The valuation is really not that demanding,” John Belton, a portfolio manager at Gabelli Funds and a Meta shareholder, told Reuters last week. Reuters
Eyes turn to the trial calendar next. Opening statements in the New Mexico case kick off on Feb. 9. Investors will be closely monitoring early rulings, which might influence the wider surge of youth-focused lawsuits targeting social media firms.
