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Big tech stocks face uncertainty with AI growth costs and rising rules
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Yet strong ads and smart AI investments could help Meta rebound—investors often overlook short-term fights if results impress
Meta’s shares fell by about 1% in after-hours trading on Tuesday, trading at $671.01, while the Nasdaq saw smaller losses. This comes amid a wave of legal and regulatory challenges for the Facebook and Instagram owner.
In Germany, a court ruled that Meta’s network arm, Edge Network Services, must pay Deutsche Telekom around €30 million for traffic exchange services at key internet points. Meta strongly disagrees and plans to fight back. This reflects telecom firms’ demands for tech giants to help fund broadband expansion.
Bright spots emerged too. WhatsApp won backing from Europe’s top court to appeal a €225 million privacy fine, calling it a welcome step in challenging data protection decisions.
However, EU antitrust watchdogs charged Meta on Monday with breaking competition rules by blocking rival AI chatbots from its WhatsApp Business tool, which links companies directly to the app. Meta insists there’s no need for interference.
In India, social media platforms now have just three hours—from February 20—to remove illegal content after alerts, down from 36 hours. Experts say this is nearly impossible to achieve.
US troubles mount as well. A California woman sued Meta and YouTube, claiming they addict children; Meta’s CEO Mark Zuckerberg may testify. In New Mexico, the state accuses Meta of profiting while harming young users’ mental health and exposing them to exploitation.
Adding to the noise, Meta executive Javier Olivan filed to sell 517 shares via an automated plan.
