New York, Feb 4, 2026, 16:28 EST — After-hours
Shares of Meta Platforms, Inc. slipped roughly 3.3% to $669 in after-hours Wednesday, adding to a volatile week for the Facebook and Instagram parent amid a pullback in pricey tech. During the session, the stock swung between $664.96 and $693.33.
This slide is significant since Meta stands at the intersection of two key market forces: the expenses tied to expanding artificial intelligence (AI) and the potential regulatory pressure on digital advertising. Either factor alone can trigger sharp moves in the stock.
U.S. stocks closed lower, weighed down by concerns over valuations and the returns from AI investments, hitting chips and software sectors hard and pulling the Nasdaq down 1.51%. Advanced Micro Devices dropped after issuing a cautious revenue forecast, while Alphabet slipped ahead of its earnings report after the bell. “The market is suddenly skeptical and concerned about it,” said Jed Ellerbroek, portfolio manager at Argent Capital in St. Louis. 1
U.S. Senators Ruben Gallego and Bernie Moreno have unveiled the Safeguarding Consumers from Advertising Misconduct Act, or SCAM Act. The bill would push social media companies to take “reasonable steps” to screen advertisers and clamp down on scam ads, with enforcement coming from the Federal Trade Commission and state attorneys general. “If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren’t fraudulent,” Gallego said. Meta, however, challenges the estimates on scam-ad revenue. A company spokesperson noted, “We aggressively fight fraud and scams.” 2
Meta reported fourth-quarter revenue of $59.89 billion last week, marking a 24% increase from the same period a year ago. The company expects first-quarter revenue between $53.5 billion and $56.5 billion. Looking ahead to 2026, Meta highlighted capital expenditures in the range of $115 billion to $135 billion, aimed at expanding its AI infrastructure with investments in data centers and other long-term assets. 3
Traders enter Thursday eyeing two key markers: if results from ad-heavy peers ease concerns about digital ad demand, and whether the narrative around AI spending takes another turn. Alphabet’s earnings and their implications for online advertising stand to influence the entire sector.
The downside scenario is straightforward. Should the scam-ad bill gain momentum, stricter verification could introduce hurdles for advertisers and drive up compliance expenses. On top of that, a sharper pullback in high-multiple AI stocks might jostle shares, even when company updates are scarce.
Investors will be eyeing the next session on Feb. 5 to see how markets absorb Alphabet’s earnings, along with any new cues from Washington on scam-ad enforcement. Attention will also turn to whether tech’s late-day pullback holds steady.
