A Los Angeles jury said Meta and Google were responsible for a young woman's depression linked to Instagram and YouTube use, awarding $6 million in damages.
Meanwhile, a New Mexico jury fined Meta $375 million for allegedly misleading users about child safety.
These cases are putting all tech giants under the microscope: over 2,400 similar lawsuits are already lined up in California.
As Adam Sarhan from 50 Park Investments put it, the verdicts add a new layer of risk on top of concerns about AI spending, competitive pressure from TikTok and the durability of ad growth, and could prompt some profit-taking, especially for smaller companies like Snap, which also saw its shares drop.