Meta and Alphabet Shares Slump Amid AI Spending Concerns and Legal Pressures

Shares of tech giants Meta and Alphabet faced intensified downward pressure as investor sentiment soured further this week. Meta Platforms saw its weekly stock sell-off deepen to 11%, exceeding initial reports of a 7% drop. The decline follows a landmark legal verdict regarding social media addiction, which now explicitly names Alphabet's YouTube as a party alongside Meta. Meanwhile, Alphabet shares broke through key technical support levels as markets reacted to massive capital expenditure (CapEx) on artificial intelligence. Investors are increasingly concerned about a potential "CapEx Trap," fearing that heavy AI investments may not yield sufficient returns in the near term. The technical outlook for both companies remains distinctly bearish amid these growing regulatory and financial challenges.

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