New York, Feb 3, 2026, 4:53 PM EST — After-hours
- Meta shares closed down 2.1%, then dipped slightly more in after-hours trading
- Supreme Court of India signals it may reinstate restrictions on WhatsApp’s data sharing with Meta entities
- Investors are also monitoring stricter teen-social-media rules in Spain and Greece, along with a child-safety trial unfolding in New Mexico
Meta Platforms shares ended Tuesday down 2.1%, closing at $691.70 after fluctuating between $686.50 and $714.36 during the session. In after-hours trading, the stock slipped roughly 0.2% to $690.50.
The decline reflects growing investor concerns over new legal and regulatory challenges facing social media giants in key markets, amid turbulent trading for megacap tech. Meta found itself caught in the crossfire, with scrutiny intensifying on both data-sharing policies and child safety issues.
This is crucial now since India ranks as Meta’s largest market by user count, with WhatsApp playing a key role in its business messaging and commerce efforts. Tighter restrictions on sharing user data across Meta’s apps could complicate ad targeting and measurement in this vital growth region.
India’s Supreme Court warned Tuesday it might reinstate a ban on WhatsApp sharing data with other Meta companies, according to two lawyers at the hearing. Chief Justice Surya Kant criticized WhatsApp’s privacy policy, calling it “very cleverly designed to mislead users,” the lawyers said. WhatsApp declined to comment. The court will resume the case next week. Reuters
Spain announced plans to ban social media use for under-16s and proposed a law to make social media executives personally liable for hate speech on their platforms. Meta, Alphabet, TikTok, and Snap representatives did not immediately reply to requests for comment, Reuters reported.
Meta slid alongside other big tech stocks as investors fretted that new tools from Anthropic might accelerate disruption in software, data, and ad-driven sectors. “Sometimes the market just shoots first and asks questions later,” said Mike Archibald, a portfolio manager at AGF Investments, commenting on the selloff. Reuters
In Santa Fe, a child-safety lawsuit targeting Meta is headed to trial, according to the Associated Press. The case, filed by state Attorney General Raúl Torrez, accuses Meta’s platforms of exposing minors to sexual solicitations. Meta has pushed back against these allegations.
Meta faces a major risk if courts and lawmakers move from discussion to concrete restrictions—stricter data-sharing rules, tougher safeguards for young users, or potentially both. Such moves could force product adjustments that drag growth or hike compliance expenses. Another threat looms in the broader tech selloff: if fears around “AI disruption” intensify, Meta could be dragged down alongside the sector, no matter its own news.
Investors are gearing up for the resumption of the WhatsApp case in India’s Supreme Court next week, while also keeping an eye on the initial moves from New Mexico’s trial schedule. Earnings reports from Alphabet on Wednesday and Amazon on Thursday will be key to gauging online ad demand and the spending outlook for big tech.
