NEW YORK, December 31, 2025, 4:35 PM ET — After-hours
Meta Platforms (META) shares slipped about 0.9% in after-hours trading on Wednesday, hovering near $660. The Facebook and Instagram owner traded between $659.35 and $667.08 in the session.
The year-end move comes as investors weigh two forces that can pull in opposite directions: Meta’s push to add new AI features and the risk that tougher fraud rules raise costs or slow ad sales. With liquidity thinning into holidays, company-specific headlines can have an outsized impact.
Meta still relies on advertising for the bulk of its revenue, which makes brand safety and platform trust immediate market issues. At the same time, AI spending and deal-making can reshape the growth story, but they also put pressure on margins if costs rise faster than sales.
A Reuters investigation published on Wednesday said internal documents show Meta built a “playbook” aimed at delaying “universal advertiser verification” — identity checks for all advertisers — as governments pushed for tougher controls on scam ads. The report also described how Meta studied searches of its public Ad Library and adjusted enforcement so problematic ads were less discoverable to regulators, journalists and investigators; it noted Alphabet’s Google has said it has verified more than 90% of advertisers. Reuters
In a separate development late Tuesday, the U.S. Virgin Islands sued Meta, alleging the company profited from advertisements for scams and failed to keep its platforms safe for children. Meta has denied the allegations and said user reports of scams on its platforms have fallen over the last 18 months, Reuters reported.
Meta said on Monday it would acquire Chinese-founded AI startup Manus and integrate its technology into products including Meta AI, with a source putting the deal value at $2 billion to $3 billion. Rosenblatt Securities analyst Barton Crockett called the deal “a natural fit into Meta’s fast-growing WhatsApp SMB footprint.” Reuters
SMB refers to small and medium-sized businesses, a segment where WhatsApp has become a major channel for customer support and sales chats. Manus has marketed itself as a “general AI agent,” meaning software designed to take actions with less step-by-step prompting than a standard chatbot.
The broader market backdrop was cautious: Wall Street closed the final session of 2025 lower, with the S&P 500 down 0.73% and the Nasdaq down 0.76%. U.S. markets are closed on Thursday for New Year’s Day.
For Meta, investors now have two near-term watchpoints: whether the Manus deal draws extra scrutiny because of its China ties, and whether policymakers respond to the latest reporting on scam ads with new verification requirements. Either outcome could change the company’s cost profile and regulatory risk heading into 2026.
The trade-off is straightforward. New AI products can support engagement and open up new business tools over time, but compliance costs and litigation can move faster than product cycles.
Meta’s shares have tended to track the broader megacap tech group this year, but the latest headlines are company-specific. That keeps attention on what Meta says next about spending, safety measures and how quickly it can fold new AI capabilities into consumer and business products.
Meta stock held around $660 into the after-hours session. With trading resuming Friday, investors will be watching for follow-through on the Manus acquisition and any new legal or regulatory signals tied to scam advertising.
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