NEW YORK, December 31, 2025, 4:35 PM ET — After-hours trading saw shares of Meta Platforms (META) decline by approximately 0.9%, settling around $660. The owner of Facebook and Instagram experienced intraday fluctuations between $659.35 and $667.08.
This year-end movement occurs as investors grapple with two contrasting factors: Meta’s initiative to integrate new AI features and the potential impact of stricter fraud regulations that may increase costs or hinder advertising revenue. With market liquidity diminishing as the holiday approaches, company-specific news can exert a disproportionate influence on stock prices.
Meta continues to depend heavily on advertising for most of its revenue, emphasizing the immediate importance of brand safety and platform trust. Meanwhile, investment in AI and potential mergers could redefine Meta’s growth trajectory, although rising costs could strain profit margins if they outpace revenue growth.
A recent investigation by Reuters revealed that internal documents indicate Meta has developed a “playbook” for postponing “universal advertiser verification,” a measure aimed at identity checks for all advertisers amid increasing governmental scrutiny over misleading advertisements. The report also highlighted Meta’s practices of modifying the visibility of questionable ads in its public Ad Library to make them less accessible to regulators and investigators, in contrast to Alphabet’s Google, which has verified over 90% of its advertisers.
In another development, the U.S. Virgin Islands has initiated a lawsuit against Meta, alleging that the company profited from advertisements related to scams and failed to ensure the safety of its platforms for children. Meta has refuted these claims, asserting that user reports of scams on its platforms have decreased over the past 18 months.
On Monday, Meta announced its intention to acquire Manus, a Chinese-founded AI startup, aiming to integrate its technology into products such as Meta AI. Sources estimate the deal’s value to be between $2 billion and $3 billion. Barton Crockett, an analyst at Rosenblatt Securities, characterized the acquisition as a “natural fit” within Meta’s expanding small and medium-sized business (SMB) presence on WhatsApp, which has become a significant platform for customer support and sales interactions. Manus positions itself as a “general AI agent,” capable of executing tasks with less user prompting than traditional chatbots.
The broader market trend reflected caution, with Wall Street closing the final trading session of 2025 lower; the S&P 500 fell by 0.73%, while the Nasdaq declined by 0.76%. U.S. markets will be closed on Thursday for New Year’s Day.
For Meta, investors are closely monitoring two immediate factors: the potential scrutiny surrounding the Manus acquisition due to its connections with China, and the likelihood of policymakers implementing new verification requirements in response to the latest revelations about scam advertisements. The outcomes of these factors could significantly alter the company’s cost structure and regulatory risks as it heads into 2026.
The balance is clear: while new AI innovations may enhance user engagement and create additional business opportunities, compliance costs and legal challenges can escalate more rapidly than the pace of product development.
Throughout 2025, Meta’s stock performance has largely mirrored that of the broader megacap tech sector, but recent headlines are distinctly company-specific. This focus keeps attention on Meta’s forthcoming disclosures regarding spending, safety measures, and the integration of new AI functionalities into its consumer and business offerings.
As trading resumes on Friday, Meta’s stock remains around $660, with investors keenly awaiting updates on the Manus acquisition and any new legal or regulatory developments related to scam advertising.
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