Meta shares slide after $6M privacy verdict, layoffs and ARK stake cut
Meta shares fell after a jury ordered the company to pay $6 million in privacy damages and announced layoffs. High-profile selling from Cathie Wood's ARK Investment, which reduced its Meta position to fund another AI stock, compounded the pressure.
1. Jury Awards $6M in Privacy Damages
A federal jury found that Meta violated user privacy protections and ordered the company to pay $6 million in damages. The verdict stems from a class-action suit alleging unauthorized data sharing linked to targeted advertising practices.
2. Layoff Announcement
Meta confirmed it will implement layoffs across multiple divisions as part of cost-cutting measures. The company has not disclosed the headcount affected but said the reductions will align resources with long-term strategic priorities.
3. ARK Investment Reduces Meta Exposure
Cathie Wood's ARK Investment trimmed its Meta stake, reallocating capital into another AI-focused stock. The high-profile institutional selling added downward momentum to Meta shares, which were already pressured by the legal ruling and workforce cuts.