Why Meta Platforms Stock Is Falling Today

Why Meta Platforms Stock Is Falling Today

Johnny Rice, The Motley Fool

Mon, August 17, 2026 at 10:08 PM GMT+3 3 min read

Meta Platforms (NASDAQ: META) stock is down Monday, falling 3.8% as of 2:43 p.m. ET. The S&P 500 and the Nasdaq Composite are also sliding, down 0.4 and 0.3%, respectively.

Just weeks after the social media giant lost a high-profile case in New Mexico, it will once again defend itself in court tomorrow -- this time, in California.

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29 states are suing Meta over child safety

Oral arguments begin Tuesday morning in a major, unified case brought by Attorneys General from 29 states. Led by California AG Rob Bonta, Meta is facing allegations that it knowingly fostered addictive behavior in teens and children.

Meta has denied wrongdoing and said that the case's "limited claims are unsubstantiated and their financial demands are vastly disproportionate."

This follows Meta's recent loss in a similar case in New Mexico earlier this month. The company will be forced to pay $1 billion in damages and change some of its policies.

What a loss could mean for Meta and big tech

While losing the New Mexico case was undoubtedly damaging, a loss in the current case could be significantly more so -- and not just for Meta. Some in the industry are saying this could be a sort of "big tobacco moment" for big tech.

I think that risk is real. A loss in this case would have far-reaching consequences for Meta and social media companies across the board.

Should you buy stock in Meta Platforms right now?

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

Why Meta Platforms Stock Is Falling Today was originally published by The Motley Fool