Meta Platforms (META) Reaches $17bn–$18bn Child Safety Settlement as Investors Reassess

Meta Platforms (META) has reached an approximately US$17 billion to US$18 billion settlement with a coalition of US states over alleged harm to children from Facebook and Instagram. With a clearer legal backdrop, investors are now reassessing the stock.

Meta's share price has pulled back over the past year, with the year-to-date return down 12% and the 90-day return down 8.1%. That comes after a strong run, with a three-year total shareholder return of 92.4%. Heavier AI capital spending, regulatory pressure and the settlement help explain why the stock peaked in 2025 and still trades below that high.

Meta's capital expenditure ran to $72.2 billion in 2025, and guidance for 2026 has since been lifted to a range of $125 billion to $145 billion — roughly doubling its infrastructure bill in a single year. When the company raised the range in April, the stock fell on the news.

For context, Meta reported $200.97 billion of revenue in 2025, up 22%, with advertising still around 97% of the total. The narrative still faces pressure from unproven payoffs on very high capex, as well as ongoing regulatory scrutiny around data, privacy and teen safety.