How does this scrutiny compare to recent actions against other tech firms like Google or TikTok?

The probe of Meta’s AI chatbot policies for children adds a new layer of regulatory pressure that is broader in scope than the recent, more narrowly‑targeted actions against Google and TikTok. Google’s latest antitrust hearings have centered on search‑engine bias and advertising‑market dominance, while TikTok has faced a series of executive orders and FTC investigations focused mainly on data‑privacy and national‑security concerns. Meta’s issue, however, ties AI‑driven product design directly to child‑safety compliance—a theme that regulators are beginning to treat as a systemic risk across the entire tech sector. In market terms, the sentiment shock to META (‑70) is sharper than the modest dip seen after Google’s hearing (≈‑15) or the short‑term volatility surrounding TikTok’s ban threat (≈‑20). This suggests a higher perceived probability of fines, forced product redesigns, or even future legislation that could constrain Meta’s AI rollout pipeline.

From a technical standpoint, META is testing the lower end of its 50‑day moving average and is trading near a key resistance zone around $340‑$350, with the RSI hovering below 40, indicating oversold pressure but also heightened downside risk. By contrast, Alphabet (GOOG) remains above its 200‑day MA with a relatively stable bullish trend, while ByteDance’s privately‑held stock shows no tradable price signal. Traders could consider a short‑term bearish position on META—either a put spread or a tightly‑managed short—while keeping the risk limited to 1‑2% of capital given the potential for a bounce if the Senate inquiry stalls. Simultaneously, a modest long exposure to GOOG (e.g., a call spread above $135) may capture relative strength as investors rotate risk away from META’s AI controversy toward the more defensively‑positioned search and cloud businesses. Monitoring the Senate hearing calendar and any forthcoming FTC statements will be crucial; an escalation could push META’s volatility higher, presenting opportunities for straddle or delta‑neutral strategies.