Meta Platforms faces significant regulatory pressure as Italy's antitrust authority, on December 24, 2025, ordered a suspension of terms blocking third-party AI competitors from WhatsApp. This, coupled with ongoing EU and Indian probes, challenges Meta's "walled garden" AI strategy. Concurrently, Meta bolstered its AI capabilities with the December 30, 2025, acquisition of AI startup Manus. Despite regulatory headwinds, Baird analyst Colin Sebastian reaffirmed an 'Outperform' rating and an $815 price target, projecting a strong 2026 for Meta amid its AI investments.