Meta Shares Slide 5% After AI Chatbot Hack Exposes Automation Risks

Meta shares fell more than 5% on June 3 as investors reacted to a high-profile Instagram breach that tricked the company's AI support chatbot into resetting credentials for major accounts. The incident, first reported June 1 and confirmed resolved by June 2, allowed attackers to hijack profiles including the Obama-era White House and Sephora handles via prompt injection without compromising victims' emails. Security experts highlighted risks from Meta's March 2026 AI rollout and recent 8,000-person layoffs that cut cybersecurity teams, intensifying scrutiny of the firm's $145 billion AI infrastructure plans and broader automation strategy.