New York, Feb 17, 2026, 10:14 EST — Regular session
Shares of Meta Platforms (META.O) slid 1.1% to $632.82 in early New York trading Tuesday, after new concerns around AI-generated content hit the social media sector. Alphabet dropped 2.3%, Snap lost 1.8%, and the Nasdaq-100 tracker fund QQQ was off roughly 1.2%.
Big tech stocks are still on edge, with investors for weeks now debating if their aggressive AI investments will deliver returns soon enough. “The markets are taking each sector one-by-one and stress testing their business models,” said Axel Botte, head of market strategy at Ostrum Asset Management. 1
Meta’s immediate concerns aren’t really about ad demand right now. Instead, it’s the impact of new regulations on operating Facebook, Instagram, and WhatsApp for such a huge user base. Stricter requirements for taking down content quickly and clamping down on deepfakes—those AI-crafted images or videos that mimic reality—could push up compliance expenses and slow down how fast Meta can launch new features.
Spanish authorities have directed prosecutors to look into X, Meta, and TikTok for the alleged distribution of AI-generated child sexual abuse content, Prime Minister Pedro Sanchez said Tuesday. “The impunity of these giants must end,” Sanchez posted. His office pointed to a technical report from three ministries as the basis for the probe. The companies hadn’t commented by press time. 2
Information Minister Ashwini Vaishnaw told reporters that global players like Meta are expected to stick to India’s constitutional norms and respect its cultural context. The country just cut the window for platforms to pull down unlawful posts—three hours now, slashed from 36. Vaishnaw added that tighter rules on deepfakes are also on the table. 3
Britain is considering a ban on social media for under-16s, following the Australian model, and wants to tighten up the Online Safety Act so it covers one-to-one AI chatbots that currently slip through the cracks, technology minister Liz Kendall said. Speaking to Times Radio, Kendall voiced her concerns about AI chatbots and said the government expects to lay out its proposals before June. 4
Regulators are turning up the heat just as Meta pours serious cash into AI infrastructure. The company is projecting capital expenditures between $115 billion and $135 billion in 2026, with funds earmarked for data centers and hardware, all in support of what CEO Mark Zuckerberg dubs “personal superintelligence.” 5
Traders are eyeing possible cuts to advertiser budgets and checking if stricter rules are limiting the targeting tools Meta relies on to sell ads. If engagement or ad pricing takes a hit, it’s the broader digital advertising group’s commentary that will probably flag it first.
What happens next isn’t obvious. These probes often last, sometimes for months. If regulators push ahead with fines, age restrictions, or curb the use of recommendation algorithms, user growth in Europe—and possibly beyond—could take a hit. Companies might also have to roll out product tweaks sooner than planned, which rarely comes cheap.
AI-focused investors are eyeing Feb. 25, when Nvidia is set to report its quarterly numbers—a closely watched signal for demand, especially among big buyers like Meta. The company plans to discuss results that day. 6
