Japan's Nikkei gains as Meta's AI gadget launch lifts CPU-related stocks

Wells Fargo raised its 12-month price target for Meta Platforms (META) to $1,000 from $796, maintaining an 'Overweight' rating. The company reported a 28% revenue increase to $60.8 billion in Q2 2026, but faces risks from high capital expenditure and regulatory pressures.

UK regulator Ofcom is investigating Meta over its Instagram Instants feature, examining whether the company adequately assessed risks before launch. The probe focuses on potential harm to users, particularly children. Meta has not yet commented on the investigation.

Meta acquired 419 Sony patents for VR, AR, and MR tech, including 180 US patents. The deal, finalized in December 2025, covers patents for spatial data, displays, and eyewear. Meta plans to launch $1300 VR glasses in 2027, while Sony is scaling back its VR hardware ambitions.

Florida Attorney General James Uthmeier filed a lawsuit against Meta Platforms, seeking a temporary injunction to limit teen use of its platforms. The case is pending a judge's decision.

Meta (META) and Alphabet (GOOGL) units are investing $300M in Biohub's $1.8B Virtual Biology Initiative, aiming to create AI models that predict cell behavior. The project, backed by Mark Zuckerberg, seeks to generate large datasets for biological research, with commercial partners gaining early access. Biohub expects its first dataset within a year and predictive models within five years, though the effectiveness of data scaling in biology remains uncertain.

Florida is seeking a court order to force Meta to implement stricter safety measures for young users on Instagram and Facebook, including age verification and daily usage limits. The state declined to join a settlement with Meta, which 48 other states agreed to, involving $18 billion in payments and teen safety changes. Florida's lawsuit alleges Meta designed its platforms to be addictive for young users.