Meta stock steadies after hours as Big Tech AI spending fears bite; WhatsApp India hearing set for Feb 9
New York, Feb 5, 2026 - Meta's stock held its ground after the bell, a rare pause while Big Tech sold off on AI spending worries. The story isn't a rally. It's the absence of a slide.
Market snapshot
- Meta after-hours: +0.2% to $670.21; intraday range: $655.77-$681.05; volume ~16.6M shares.
- Nasdaq: -1.57%; S&P 500: -1.20% as investors reassessed AI capex plans across mega-cap tech.
The spending question: promise vs. payback
Alphabet told analysts 2026 capital expenditures could reach $175-$185 billion as it builds AI infrastructure. Capex here is the heavy stuff: data centers, chips, networks-long-lived assets that won't pay back overnight.
Meta guided 2026 capex to $115-$135 billion and projected full-year expenses of $162-$169 billion. CEO Mark Zuckerberg said he's "looking forward to advancing personal superintelligence for people around the world in 2026."
Not everyone is worried. "The returns are enormous today - they're just not coming on the generative AI side," said John Belton of Gabelli Funds, which holds Meta shares. That's the core debate: near-term ad cash flow vs. long-term AI bets.
Policy pressure intensifies
In Washington, a bipartisan Senate bill would push social platforms to vet advertisers and take reasonable steps against scam ads, with oversight by the FTC and state attorneys general. Meta acknowledged internal figures overstated scam-ad revenue, adding, "We aggressively fight fraud and scams."
India tests WhatsApp data-sharing
The Supreme Court of India has signaled it could reinstate a ban on WhatsApp sharing user data with Meta companies. The matter traces back to a 2024 antitrust fine and a five-year cap on data sharing tied to ads.
The court will revisit the case on Feb. 9, seeking deeper explanations of data practices. A stricter order could limit cross-app data flows, raise compliance costs, and dull targeting-pressure points for Meta's ad engine.
Ops notes and competitive read-across
Instagram recovered from a brief outage Wednesday that triggered 10,000+ U.S. user complaints, per Downdetector. Meta hasn't commented.
Snap reported a 28% jump in active advertisers in Q4, lifting its shares more than 2% after hours. Still, an Emarketer analyst said Snap's ad platform "has a long way to go" before it secures larger enterprise budgets.
What to watch next
- Margins vs. megaprojects: If ad growth cools, the AI buildout could compress operating margins faster than expected.
- Targeting friction: New vetting rules and limits on data sharing may lift costs and reduce precision, especially across apps.
- Feb 9 catalyst: The WhatsApp hearing in India could set a template for cross-border data restrictions.
- Earnings translation: Track how AI capex shows up in unit economics-engagement, inference costs, ad yield-quarter by quarter.
Practical next steps for teams
- Investors: Model sensitivity to ad growth deceleration vs. capex ramp; stress-test scenarios where cross-app data is curtailed.
- Advertisers: Prepare for stricter verification and fewer data signals; lean into creative testing and mixed-media measurement.
- Policy leaders: Clarify enforcement scope for scam-ad rules and align with platforms on fast takedown protocols.
If you're building internal AI capability while budgets tighten, a focused upskilling plan helps. Browse role-based programs at Complete AI Training.
Bottom line: Meta avoided another sell-off. The real test is ahead-funding massive AI infrastructure while navigating tougher rules on ads and data. All eyes on Feb. 9.
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