Meta shares have retreated more than 10% from their 52-week peak after forecasts that major tech firms – including Meta – will invest over $650 billion in AI infrastructure during 2026. Investors worry that such a 60% surge in capital expenditure from 2025 levels will compress profit margins and weigh on growth projections.

A recent court decision mandates Meta pay unspecified fines over allegations its interface design is intentionally addictive, with the company filing an appeal. The ruling raises the prospect of mandated product redesigns—such as limitations on infinite scroll—that could alter user behavior patterns and reduce advertising yields.