New York, February 20, 2026, 10:29 EST — Regular session
- Meta Platforms shares rose about 1.4% in early U.S. trade.
- Zuckerberg faced questioning in a youth social media addiction trial that investors see as a test case.
- A separate report said Meta trimmed employee stock awards as it ramps AI spending.
Meta Platforms shares rose 1.4% to $653.84 on Friday morning, tracking a firmer tape in big tech as investors weighed new court scrutiny of the company’s apps and fresh signs of cost discipline.
The stock move matters because legal risk is back in view at the same time Meta is spending heavily to expand its artificial intelligence capacity. That mix can swing sentiment fast: lawsuits can drag on, but bills for data centers arrive on time.
Traders are also trying to separate noise from signals. A compensation tweak can hint at how hard Meta intends to push its spending plan, and whether management is willing to squeeze elsewhere to keep margins from slipping.
In Los Angeles this week, Chief Executive Mark Zuckerberg told jurors Meta does not allow users under 13 on Facebook and Instagram, after a plaintiff’s lawyer confronted him with internal documents. Zuckerberg said the lawyer was “mischaracterising what I am saying,” and argued that verifying users’ ages is difficult for app developers, adding that “one side effect” of building better products is that people may use them more. (Reuters)
Meta’s gains came alongside a rise in Alphabet, while Snap also climbed; Apple was modestly higher and Nvidia was little changed.
Separately, the Financial Times reported Meta trimmed its annual stock-option awards by about 5% for most staff, after a bigger cut last year. Meta declined to comment, Reuters reported. The company said in January it expected 2026 capital expenditures — money spent on items like data centers and servers — of $115 billion to $135 billion as it builds out AI infrastructure. (Reuters)
That spending line is still the big number for equity investors. The ad business throws off cash, but capex at that scale can pressure free cash flow, especially if returns from new AI products take longer to show up.
Hardware is also back in the conversation. Reuters reported Meta has revived its “Malibu 2” smartwatch project for a 2026 release with health tracking and a built-in Meta AI assistant, as it leans into wearables after early metaverse ambitions weighed on Reality Labs. (Reuters)
The wearable push puts Meta closer to Apple’s turf in health and devices, and it keeps the company in a crowded race for where AI features live — on phones, in glasses, or on the wrist. Alphabet’s YouTube is also a defendant alongside Meta in the Los Angeles case.
But the downside scenario is clear. An adverse verdict, or a trial record that encourages copycat claims, could raise the risk premium on social-media names; at the same time, a sustained AI spending surge could force tougher choices on costs and hiring if the ad cycle softens.
Next up, investors will watch for further trial developments and for any company commentary that puts a sharper frame around spending and compensation. Meta’s next earnings report is expected on April 29, according to Investing.com. (Investing)
