New York, Feb 2, 2026, 09:34 (EST) — Regular session
- Meta shares dropped roughly 3% in early Monday trading, dragging U.S. stocks lower at the open
- Traders face a new legal cloud as a New Mexico child-exploitation trial moves toward jury deliberation
- This week, attention turns to U.S. labor data, with trial opening statements set for Feb. 9
Meta Platforms shares dropped 2.9% to $716.50 in early Monday trading, continuing to retreat following last week’s earnings-fueled rally.
This matters because investors are growing jittery over mega-cap tech right as the calendar fills up: big-company earnings, crucial economic data, and a wave of headlines touching on costs, regulation, and risk appetite.
Meta’s shares have followed the wider “risk-off” trend, as volatility in commodities and policy doubts begin to weigh on equities. “There’s a ripple effect in stocks,” noted Jim Baird, chief investment officer at Plante Moran Financial Advisors. Reuters
Jury selection kicks off Monday in New Mexico in a case accusing Meta of facilitating child sexual exploitation on its platforms. Opening statements are scheduled for Feb. 9. “Whatever the jury says will be of substantial interest,” Eric Goldman of Santa Clara University School of Law told the Associated Press. Spectrum News 13
Meta has rejected the allegations, asserting it has measures in place to safeguard younger users. Ahead of the trial, the company labeled the state’s claims as “sensationalist, irrelevant and distracting,” Reuters reported. Meta also contends that the First Amendment and Section 230—a U.S. law that typically protects online platforms from liability for user content—shield it from responsibility. Reuters
The stock sits at a crossroads, shaken by last week’s reports. Meta raised its 2026 capex forecast to $115 billion–$135 billion, doubling down on its bet on “superintelligence.” CEO Mark Zuckerberg dubbed 2026 “a big year” for that push. Capital expenditure means funds spent on long-term assets like data centers and servers. Reuters
Meta’s latest earnings showed fourth-quarter revenue hitting $59.9 billion, a 24% jump from last year, with net income reaching $22.8 billion. The company flagged increased expenses tied to ramping up AI infrastructure and recruiting new talent.
Monday’s price moves felt more like a market pause than a final call on the fundamentals. With the legal calendar throwing in fresh uncertainty alongside the cost debate, those risks are tough to gauge, especially when sentiment is already fragile.
The downside is clear-cut: a trial loss or harmful internal documents might ramp up demands for design tweaks, stricter age restrictions, or other fixes that drive up costs and slow growth. On top of that, if the ad market softens but spending continues to climb, margins could tighten quickly.
Investors will watch U.S. data closely for clues that could shift rate expectations. Key reports include the JOLTS job openings on Tuesday (Feb. 3) and the monthly employment numbers on Friday (Feb. 6), as per the U.S. Labor Department’s schedule.
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