New York, Feb 17, 2026, 10:14 EST — Regular session
Meta Platforms (META.O) shares fell in early New York trading on Tuesday as a fresh round of scrutiny over AI-made content landed on the social media sector. Meta was down 1.1% at $632.82, while Alphabet slipped 2.3% and Snap fell 1.8%; the Nasdaq-100 tracker fund QQQ was down about 1.2%.
The tone for big tech remains jumpy after weeks of investors questioning whether heavy spending on artificial intelligence will pay off fast 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. (Reuters)
For Meta, the near-term focus is less about ad demand today and more about what new rules mean for running Facebook, Instagram and WhatsApp at scale. Faster takedown demands and tougher policing of deepfakes — AI-generated images or video designed to look real — can translate into higher compliance costs and more limits on product rollout.
Spain on Tuesday ordered prosecutors to investigate X, Meta and TikTok over alleged spreading of AI-generated child sexual abuse material, Prime Minister Pedro Sanchez said. Sanchez wrote that “the impunity of these giants must end,” and his office said the move was based on a technical report from three ministries; the companies did not immediately respond to requests for comment. (Reuters)
In India, Information Minister Ashwini Vaishnaw said global platforms including Meta must operate within the country’s constitutional framework and cultural context. India last week tightened rules requiring platforms to remove unlawful content within three hours of being notified by authorities, down from an earlier 36-hour timeline, and Vaishnaw said deeper regulation of deepfakes was needed. (Reuters)
Britain is also weighing an Australian-style ban on social media for under-16s and plans to close a loophole that leaves some one-to-one AI chatbots outside its Online Safety Act, technology minister Liz Kendall said. Kendall told Times Radio she was “concerned” about AI chatbots and said the government would set out proposals before June. (Reuters)
The regulatory drumbeat comes as Meta spends heavily on AI capacity. Meta has forecast 2026 capital expenditure — money spent on items like data centers and equipment — of $115 billion to $135 billion as it pursues what CEO Mark Zuckerberg has called “personal superintelligence.” (Reuters)
Traders will also watch for signs advertisers are trimming budgets and whether tighter rules curb targeting tools that help Meta sell ads. Any hit to engagement or ad pricing would likely show up first in commentary from the broader digital advertising group.
But the next step is unclear. Investigations can drag on, and any move toward fines, age-based bans or limits on recommendation algorithms could weigh on user growth in Europe and elsewhere — and force quicker product changes that tend to come with a cost.
The next big calendar test for the AI trade comes on Feb. 25, when Nvidia is due to discuss quarterly results — a datapoint investors often treat as a read-through on AI chip demand from large customers, including Meta. (NVIDIA Newsroom)
