A New Mexico judge ordered Meta to pay $25 billion on October 21 following a jury verdict regarding the company's handling of user data. The ruling stems from a 2021 lawsuit involving nearly 44 million violations of state consumer protection laws related to the Cambridge Analytica scandal.
Despite the record penalty, Meta shares rose approximately 2% to $708, with the company maintaining a market capitalization of roughly $1.8 trillion. Analysts note that the fine represents about 1.4% of the company's total market value and is subject to a likely multi-year appeal process.
Investors are currently focused on Meta's financial performance and AI initiatives. The Muse AI assistant, launched on September 8, recorded 10.9 million downloads and 2.5 million daily active users by October 16. Meta stock has gained roughly 15% since the launch of the tool.
The company is preparing to report third-quarter earnings, with analysts projecting revenue of approximately $63.3 billion. Meta has also announced plans for capital expenditure between $130 billion and $145 billion for 2026 to support its AI infrastructure and core operations.
