After-Hours Trading Highlights for Meta Platforms
New York, February 20, 2026, 17:46 EST — The after-hours trading session unfolded with notable developments.
- Meta shares experienced an approximate 1.7% uptick, reflecting a late-week surge among U.S. megacaps.
- A report indicated that Meta has reduced annual stock awards by approximately 5% for the majority of its employees.
- Investors are also considering the revival of a smartwatch initiative alongside a jury trial focusing on youth-targeted harm featuring CEO Mark Zuckerberg.
In after-hours trading, Meta Platforms’ shares climbed 1.7% to $655.66, oscillating between $639.00 and $663.16 during the trading day.
This shift followed reports of a 5% reduction in annual stock awards for most employees, marking the second consecutive yearly decline as Chief Executive Mark Zuckerberg intensifies investments in artificial intelligence.
Meta forecasts capital expenditures between $115 billion and $135 billion for 2026, while simultaneously constructing several extensive data centers, including one in rural Louisiana projected to cost President Donald Trump $50 billion; Meta, however, refrained from commenting.
The timing is critical, as market sentiment has grown increasingly sensitive to the pace at which Big Tech can convert AI investments into revenue. Investors are seeking insights from chipmakers and their primary clientele.
“It’s difficult for Nvidia to astonish when expectations are already set high,” noted Marta Norton, chief investment strategist at Empower, in her assessment of the forthcoming week for AI-related stocks.
On that day, U.S. equities closed with gains as the Supreme Court nullified Trump’s global tariffs, prompting investors to turn their focus back on major growth companies, particularly within the communication services sector, which emerged as the foremost gainer in the S&P 500. The S&P 500 advanced by 0.69%, while the Nasdaq Composite increased by 0.90%.
Meta has once again captured attention in the hardware sector. According to a report, the company intends to resurrect its “Malibu 2” smartwatch project, slated for launch later this year, featuring health tracking capabilities and an integrated Meta AI assistant; Meta chose not to comment on this development.
The report further disclosed that shipments of Meta-branded Ray-Ban smart glasses approached 6 million units last year and that the company is actively developing multiple augmented and mixed-reality devices.
A jury trial in Los Angeles represents another looming concern. In his testimony, Zuckerberg denied that Instagram is designed to target children and countered assertions that the platform is engineered to engage younger audiences, alleging that a lawyer was “mischaracterizing” his statements, as reported by Reuters from the trial.
Meta faces potential liabilities, while competitors Snap and TikTok reached settlements with the plaintiff prior to the trial’s commencement.
For investors, the equation is becoming increasingly complex: Meta is tightening employee compensation while delineating ambitious infrastructure investments, all while attempting to diversify its efforts beyond advertising through innovative devices.
Nevertheless, the dynamics of the trade remain precarious. An escalation in capital expenditure may constrict margins, and free cash flow should revenue growth falter.
Compensation reductions could hinder talent retention in a competitive labor market, and the youth-harm legal case could yield an unfavorable verdict or prolong legal ambiguities.
Looking ahead, traders will closely monitor Nvidia’s quarterly results scheduled for Wednesday, February 25, as well as management insights concerning market demand, to gauge the implications of the AI expansion being financed by Meta and other major purchasers.
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