Stock Market Today, Aug. 26: Meta Gains on $18 Billion Child-Safety Settlement
Meta Platforms (NASDAQ:META), a social networking and artificial intelligence (AI) giant, closed at $576.14, up 1.07%. The stock moved after Meta settled a high-profile child-safety case with U.S. states. Meta agreed to pay up to $18 billion and introduce child-safety measures such as daily time limits and muted school-time notifications. Meta has also called on competitors to introduce similar protections.
Trading volume reached 31.1 million shares, coming in about 69% above its three-month average of 18.4 million shares. Meta Platforms IPO'd in 2012 and has grown 1,270% since going public.
How the markets moved today
The S&P 500 closed at 7,676, down 0.02%, while the Nasdaq Composite finished at 26,130, down 0.08%. Among social media and digital advertising platforms, Alphabet closed at $339.10, down 1.23%, and Snap closed at $5.42, down 8.45%.
What this means for investors
Meta shares rose slightly following today's settlement because it resolves the legal cases over child addiction with payouts that will be spread over the coming 10 years. Several media reports had compared the case to tech's "big tobacco" moment, sparking fears that it would have to pay a much larger amount.
Even so, as mega tech firms race to develop AI infrastructure, every dollar counts. The bigger question for investors is when and whether Meta's 2026 capital expenditure of $125 billion to $145 billion will generate returns. Meta's ad revenue continues to show impressive growth, and the legal cloud may have lifted, but that massive cash burn is still worth watching.
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Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool has a disclosure policy.
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