META Stock Slides Most In 5 Months After Two Legal Losses — So Why Is Retail Still Bullish?

• Earlier on Thursday, a Los Angeles jury delivered a verdict against Meta and Google, finding that the companies intentionally designed addictive social media platforms that harmed a young woman’s mental health.
• Meanwhile, earlier on Wednesday, a New Mexico jury found Meta liable for failing to protect underage individuals from online dangers.
• Separately, Meta announced on Thursday that it will grow its El Paso, Texas data center to 1 gigawatt and increase its investment to more than $10 billion.

Shares of Meta Platforms Inc. (META) closed down 8% on Thursday, falling the most since October 2025, after the company faced back-to-back legal losses in two cases related to the harmful impact of its social products on children.

However, retail sentiment around META stock improved despite the courtroom losses, with many users anticipating that the company would appeal the decisions, and win.

Earlier on Thursday, a Los Angeles jury delivered a landmark verdict against Meta and Alphabet Inc.’s (GOOG, GOOGL) Google, finding that the companies intentionally designed addictive social media platforms that harmed a young woman’s mental health, and awarded $6 million in damages. Both companies rejected the ruling and said they plan to appeal.

Meanwhile, earlier on Wednesday, a New Mexico jury found Meta liable for failing to protect underage individuals from online dangers including solicitation, sexually explicit content, and human trafficking.

What Did Stocktwits Users Say?

On Stocktwits, retail sentiment improved from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volumes stayed at ‘high’ levels.

One bullish user said the case would be dismissed and the stock would rise.

Another user also said that Meta would win the appeal, because if not, anyone would be able to sue them for addiction.

A third user said that juries in California and New Mexico don't dictate federal legislation.

Data Center Investment

Meanwhile, Meta also announced on Thursday that it will grow its El Paso, Texas data center to 1 gigawatt and increase its investment to more than $10 billion.

The data center in El Paso will create 300 new jobs, with more than 4,000 construction workers required at its peak, the company said. In addition, Meta also said that it is committing to add more than 5,000 megawatts of clean power to the grid.

META stock has declined more than 15% in the past one year.

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