Meta recorded its worst weekly performance since October 2025, falling over 11% amid a broad selloff that erased $850 billion from the Magnificent Seven megacap group. The downturn reflects a shift in investor sentiment as rising yields and inflation concerns weigh on growth stocks.

A New Mexico jury fined Meta $375 million for failing to protect children from exploitation, and a Los Angeles jury ordered a $4.2 million payout for social media addiction claims. Analysts warn that total settlement costs could reach the low billions, prompting the company to explore appeals and reserve additional funds.

Meta plans to invest up to $135 billion in AI data centers this year, a significant increase following more than $80 billion in losses at its Reality Labs unit over the past five years. The capex push underpins long-term AI ambitions but raises questions about near-term profitability and cash flow.

The Nasdaq 100 has entered a correction, down roughly 11% from its October peak, with Meta declining 29% over the same period. Broader market pressures include higher bond yields, inflation expectations and regulatory scrutiny of Big Tech’s social media practices.