New York, Feb 5, 2026, 16:33 EST — After-hours
- Meta shares held steady after the bell, resisting the tech sell-off.
- Big Tech’s AI spending is being re-evaluated by investors as capex forecasts rise throughout the sector.
- Meta’s ads and WhatsApp data practices came under fresh scrutiny from U.S. lawmakers and India’s highest court.
Meta Platforms shares edged up 0.2% to $670.21 in after-hours trading Thursday, following a session that saw prices fluctuate between $655.77 and $681.05. Trading volume hit roughly 16.6 million shares.
The significance lay mostly in what didn’t happen: no fresh sell-off in mega-cap tech. Investors remain cautious, weighing if the latest surge in artificial-intelligence spending will deliver returns quickly enough to cover costs, while also gauging the impact of a stricter regulatory environment on ad targeting and compliance hurdles.
U.S. stocks took a steep dive, led by a 1.57% drop in the Nasdaq as major tech players stumbled amid growing concerns over AI spending. The S&P 500 slipped 1.20%. (Reuters)
Alphabet grabbed attention this week by telling analysts its capital spending could soar to $175 billion-$185 billion in 2026 as it ramps up AI infrastructure. Capex refers to money spent on long-term assets like data centers, chips, and networking equipment. (Reuters)
Meta has laid out its guidance ahead of time. The company behind Facebook and Instagram forecasted 2026 capital expenditures, including finance-lease principal payments, between $115 billion and $135 billion. It also projects full-year expenses ranging from $162 billion to $169 billion. CEO Mark Zuckerberg added, “I’m looking forward to advancing personal superintelligence for people around the world in 2026.” (Meta)
Some investors maintain the core ad business is still pulling its weight, despite the high costs tied to the AI push. “The returns are enormous today — they’re just not coming on the generative AI side,” John Belton, a portfolio manager at Gabelli Funds, which holds Meta stock, said after the company reported earnings last week. (Reuters)
Regulatory scrutiny is re-emerging in the sector. A bipartisan Senate bill aims to force social media companies to vet advertisers and take “reasonable steps” against scam ads, with oversight from the Federal Trade Commission and state attorneys general. Meta acknowledged its internal figures exaggerated scam-ad revenue, with a spokesman stating, “We aggressively fight fraud and scams.” (Reuters)
Meta confronts a sharper challenge in India over WhatsApp data. The Supreme Court has signaled it might reinstate a ban on WhatsApp sharing user data with other Meta companies. This stems from a 2024 antitrust fine and a five-year limit on data sharing tied to advertising. (Reuters)
The court plans to revisit the case on Feb. 9, with Meta and WhatsApp scheduled to provide a deeper explanation of their data practices, TechCrunch reported. (TechCrunch)
Operational news was sparse but still noteworthy. Instagram bounced back following a short outage on Wednesday, which triggered over 10,000 user complaints in the U.S., according to Downdetector. Meta has yet to comment. (Reuters)
Snap’s latest figures gave a glimpse into the social-ad market. The company reported a 28% jump in active advertisers during the fourth quarter, pushing its shares up over 2% in after-hours trading. Yet Emarketer analyst Max Willens noted that Snap’s ad platform “still has a long way to go” before it can lure significant enterprise spending. (Reuters)
The downside for Meta is straightforward. A larger AI capex cycle might tighten margins if ad growth falters. Plus, regulatory actions that restrict data use or impose stricter advertiser scrutiny could drive up costs and weaken targeting — the core element that keeps its ad business running efficiently.
Investors are now turning their attention to the Feb. 9 hearing in India, where the court may clamp down on WhatsApp’s data-sharing practices. The bigger question: could this legal battle spill over into wider constraints on Meta’s advertising business? (Indiatimes)
