Meta stock today drops over 5% after social media addiction trial – here's what the verdict means for investors

Meta stock today: Shares of Meta Platforms Inc moved lower on Thursday, dropping more than 5% as investors reacted to a mix of legal setbacks, job cuts, and broader market concerns.

Meta Stock Drops Today Amid Social Media Addiction Trial: Meta Found Liable for User Harm

One of the biggest triggers came from a landmark social media addiction case, where a jury found Meta, including Instagram, liable for contributing to harmful and addictive behavior among a young user, as per a report.

Meta Lawsuit Explained: What the Jury Found

The ruling mentioned that the company’s platform design played a role in that harm and that it failed to properly warn users about the risks, as per a Benzinga report.

Meta vs YouTube: How Responsibility Was Split in the Verdict

The jury awarded $3 million in compensatory damages and another $3 million in punitive damages. Meta was assigned 70% of the responsibility, while YouTube was held responsible for the remaining 30%.

Key Details from the Meta Lawsuit

Jurors also concluded that the companies acted with “malice, oppression or fraud,” as per the Benzinga report. Meta has said it plans to appeal the decision.

Meta Layoffs 2026: Job Cuts Across Facebook and Reality Labs

Meanwhile, the company is also undergoing internal changes. Meta is cutting several hundred jobs across teams including Facebook, global operations, recruiting, sales, and Reality Labs. While some affected employees are being offered new roles, certain positions may require relocation.

The layoffs are part of a broader restructuring effort as the company continues to increase its investment in artificial intelligence.

How Rising Oil Prices and Market Weakness Impact Meta Stock

Adding to the pressure, broader market weakness and rising energy costs, particularly higher oil prices, are also weighing on sentiment.

FAQs

Is Meta laying off employees?
Yes, several hundred jobs are being cut across multiple teams.

Why did Meta stock fall today?
It dropped due to a legal ruling, layoffs, and broader market concerns.