Navigating Growth and Geopolitics: Meta’s Strategic Crossroads

Meta Platforms, Inc. finds itself at a complex intersection. The social media and technology giant is simultaneously making bold, long-term investments in energy infrastructure for artificial intelligence, contending with fresh regulatory challenges in key markets, and managing geopolitical scrutiny, all while its core business and new hardware ventures show remarkable operational strength.

A significant new regulatory challenge has emerged in Australia, where a law prohibiting under-16-year-olds from accessing social media platforms has forced Meta into substantial compliance efforts.

Between December 4 and 11, 2025, the company reported disabling nearly 550,000 accounts in adherence to the rule. The breakdown was approximately 330,000 on Instagram, 173,500 on Facebook, and 40,000 on Threads.

Corporate Pushback and Practical Evasion

Meta has publicly opposed the blanket ban approach, advocating instead for "safe" and "age-appropriate" online experiences rather than complete prohibitions. The company warns of a "whack-a-mole effect," where young users may simply migrate to platforms not covered by the legislation.

In practice, many teenagers are already circumventing the rules using VPNs, alternative services like Yope and Lemon8, or their parents' accounts. Adding to the legal uncertainty, Reddit has initiated a High Court challenge against the law, keeping the regulatory landscape in flux.

Securing AI's Future: A Bet on Nuclear Power

In a major strategic move for its AI ambitions, Meta recently secured several high-volume Power Purchase Agreements (PPAs) with nuclear energy providers. These 20-year contracts are designed to secure up to 6.6 gigawatts of capacity by 2035, aiming to power its rapidly expanding AI data centers with low-carbon electricity.

The key agreements include:
- Vistra: A 20-year power procurement deal for electricity from the Perry and Davis-Besse plants in Ohio and the Beaver Valley facility in Pennsylvania.
- Oklo: Development of up to 1.2 gigawatts of capacity in Ohio, with the earliest potential start date in 2030.
- TerraPower: Financing for two reactors providing up to 690 megawatts by 2032, plus rights to six additional reactors by 2035.

The announcement provided a significant boost to the involved energy firms. Oklo's shares gained nearly 20% in pre-market trading, while Vistra advanced about 8%. Joel Kaplan, Meta's Vice President of Global Policy, stated that combined with existing contracts with Constellation, these deals position Meta as one of the most significant industrial buyers of nuclear power in U.S. history.

Geopolitical Scrutiny: A $2 Billion AI Deal Under Review

Further complexity arises from geopolitical risk surrounding a key acquisition. Chinese authorities have launched an investigation into Meta's proposed $2 billion takeover of the AI startup Manus.

Should investors sell immediately? Or is it worth buying Meta?

The probe focuses on export controls and security provisions. This scrutiny creates immediate transaction risk and elevates the potential for geopolitical headlines around a deal that is strategically central to Meta's AI capability expansion.

Financial Health and Market Stance

Meta's shares opened today at $653.06, giving the company a market capitalization of $1.65 trillion. The current valuation reflects ambitious yet financially substantiated growth.

Key financial metrics:
- 52-Week Trading Range: $479.80 to $796.25
- 50-Day Moving Average: $641.26
- 200-Day Moving Average: $703.52
- Debt-to-Equity Ratio: 0.15

Fundamentally, the company remains robust. Its latest quarterly revenue reached $51.24 billion, a year-over-year increase of 26.2%. Earnings per share came in at $7.25, surpassing analyst estimates by $0.51.

The prevailing view on Wall Street is positive, with a consensus rating of "Moderate Buy" and an average price target of $822.89.

Hardware Momentum: Strong Demand for AI Eyewear

The hardware division is also showing promising signs. Meta reported "unprecedented demand" for its Ray-Ban Display AI smart glasses. Due to overwhelming order volumes in the United States, the company has temporarily halted the international rollout because existing inventory cannot meet requirements.

For the Reality Labs segment, this demand signals additional potential—provided production can be scaled up in coming quarters without excessively pressuring profit margins.

Insider Activity and Overall Assessment

Recent insider trading activity shows no alarming patterns. Chief Operating Officer Javier Oliván sold 517 shares on January 5 at $650.41 each. This transaction reduced his position by 4.24% and is considered a routine sale.

In summary, Meta is currently navigating a confluence of strategic developments: long-term bets on energy and AI, regulatory interventions in vital markets, and a burgeoning hardware business. In the near term, the regulatory examinations in Australia and China dominate the news cycle. However, the underlying strength—evident in robust revenue growth, strategic nuclear energy contracts, and surging demand for AI hardware—continues to support the company's longer-term growth trajectory.