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The case, brought by four state attorneys general, alleges that Meta violated state consumer protection laws and federal rules that protect children online.

Shares of Meta Platforms (META -3.93%) traded sharply lower Tuesday morning, falling as much as 4.1%. As of 1:10 p.m. ET, the stock was still down 3.3%.

The catalyst that sent the social media titan lower was the start of the company's latest child safety trial.

Image source: The Motley Fool.

Harmful to kids? A court case with significant implications kicked off today in U.S. District Court for the Northern District of California. The attorneys general from California, Colorado, New Jersey, and Kentucky brought suit alleging that Meta designed its social media platforms to be addictive, contributing to a rising mental health crisis among younger users. The case also alleges that Meta collects data from children under 13 without first obtaining parental consent. In all, 29 states have filed suit against the social media platform. The remaining 25 states will go to trial later.

The verdict in this case could conceivably change the way social media companies do business. The states are said to be seeking damages of $200 billion or more, though Meta suggests the states are looking for damages totaling $1.4 trillion -- the size of the company's market cap. Experts say a judgment of that magnitude is extremely unlikely.

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Earlier this year, a New Mexico jury found Meta's platforms were harmful to the mental health of children. The company was fined $375 million, but the judge later imposed an additional $567 million fine. Meta has since announced it tends to appeal. The outcome opened the floodgates for thousands of additional trials. Some are calling this social media's "big tobacco moment."

While the trial is scheduled to take between six and eight weeks, the verdict will likely be only the beginning, as the case winds its way through what will surely be a lengthy appeals process. Moreover, Meta claims the state attorneys general have failed to substantiate their claims and "their financial demands are vastly disproportionate."

There will be much more to come in the weeks and months that follow. Investors should keep an eye on the proceedings.

Danny Vena, CPA has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

In 1994, more than 40 US states came together to sue one of the most powerful industries on Earth: big tobacco.

The suits brought together diverse claims centred on tobacco companies’ misleading advertising and contribution to a mounting public health crisis. They ended in a negotiated settlement with the US government, in which the companies agreed to pay more than any industry ever, and the states agreed to drop a large portion of their claims.

Thirty years later, smoking is on the rise in the developing world, the companies involved remain profitable and the global tobacco market is worth nearly $1tn.

On Tuesday a major trial against Meta began, in which 29 states have brought the claim that the parent of Facebook and Instagram designed a deliberately addictive product and targeted it at children.

Boxes are brought into the Ronald V Dellums courthouse in Oakland, California, on 18 August, as opening arguments begin in the Meta trial. Photograph: Godofredo A Vasquez/AFP/Getty ImagesThat trial follows a bellwether case earlier this year, in which a Los Angeles jury found the social media company – and YouTube, its co-defendant – liable for deliberately designing an addictive product that had deleterious effects on the mental health of a single young claimant.

That case, which awarded the claimant $6m, opened the door for this and other litigation. At about the same time, Meta was forced to pay a total of $942m in a separate trial in New Mexico. The New Mexico case focused on whether the company was aware of – and took measures to prevent – child sexual exploitation on its platforms.

This next wave of litigation will focus less on child exploitation, and more on the fundamental design of Meta’s platform: the algorithm that underlies which content it shows to users and how. So, how far could the litigation go?

Kate Winick, an analyst at Forrester, said the trial was “potentially the end of social media as we know it” and, while a ruling against Meta would not permanently kill the industry, it could “significantly reduce usage over the long term”.

The figures that Meta and other social media companies could stand to pay are immense. The attorneys general are seeking $200bn in damages, the amount of revenue the company takes in a year. Meta has said in a court filing that they could amount to $1.4tn, which is just short of the company’s market capitalisation. The judge in the case has called the company’s estimation “unreasonable”.

Perhaps a more realistic risk for the company is the potential for permanent changes to the way its social networks operate, which are the engine for its entire business. Meta is essentially a digital advertising company. Its recommender algorithm ranks posts in users’ feeds and fuels engagement in part by showing people posts that are likely to inflame emotion and keep them hooked.

It is this algorithm that American attorneys general seem interested in changing, because it is this “dopamine-manipulating” feature – in the words of the AGs’ lawsuit – that makes social media addictive. Changes to this algorithm may not alter how Facebook advertises, said Steven Murdoch, a professor at University College London. But it could reduce engagement, which could gravely reduce its opportunity to advertise to users.

But all this depends on how big of a swing a US jury – and US regulators – are willing to take at the platform. Discontent is brewing worldwide about Meta and its business; the EU also wants the company to modify its “addictive design”.

“There’s a plausible path” for global changes to the algorithm, said Murdoch. “But whether it’s devastating or not – I’m not convinced the things that are plausibly going to be asked for are going to be devastating for the company.”

Take the recent case of Google. US regulators sued the search company in 2023 in a landmark antitrust case – which could have ended with authorities breaking up the company, perhaps forcing it to sell Chrome, the most popular web browser in the world. Google lost the case but that extreme penalty wasn’t imposed. Despite finding that the company had engaged in monopolistic practices, it got away with what critics called a “slap on the wrist” and remains a juggernaut.

“I don’t think anyone really wants to destroy Facebook. It’s a valuable company and there would be so many bad outcomes,” said Murdoch.

A Meta spokesperson said: “The state AGs may call this a landmark case but their limited claims are unsubstantiated and their financial demands are vastly disproportionate.

“Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout. We stand by our record of creating strong protections for teens, and look forward to making our case in court.”

Or take the case of big tobacco. The US government sought $289bn from major tobacco companies – including Philip Morris – in one of its landmark cases, which was prosecuted under a US anti-racketeering statute. Philip Morris and its co-defendants lost the case.

But in the course of proceedings, the government’s original monetary demand was modified to less than 5% of the original amount – $14bn, to be paid over 10 years. Philip Morris continued doing business, although it and other tobacco companies were forced to put out statements about the harms of smoking, and change how they marketed their products in the US.

Thirty years later, although smoking continues its long-term decline in the developed world, Philip Morris’s revenues are at roughly $40bn a year – less than they were 20 years ago, but not by much. They have been steadily increasing for the past four years.

Former Assistant Attorney General Jonathan Kanter joins ‘Squawk on the Street' to discuss Meta's federal trial over child safety, which begins on Tuesday, what it means for other social media giants, and more.

Meta META shares fell 3% on Tuesday as a cautious mood across Wall Street, due to higher oil prices and rising Treasury yields, weighed on technology stocks, while investors also turned their attention to a major child safety trial that could expose the company to significant financial and regulatory risks. Meta's stock has already fallen about 16% this year, with much of the pressure coming from concerns over the company's enormous spending on artificial intelligence infrastructure.

ToplineOpening arguments are set to begin Tuesday in a blockbuster tech trial in which U.S. states have accused Meta, parent company of Facebook and Instagram, of targeting children with intentionally addictive features on its social media platforms, which could result in a large fine and changes to Meta’s flagship platforms.

Meta CEO Mark Zuckerberg could be called to testify. (Photo by Jill Connelly/Getty Images)

Getty Images

Key FactsMeta’s trial kicks off Tuesday in the U.S. District Court for the Northern District of California, led by state attorneys general from California, Colorado, Kentucky and New Jersey, four states out of 29 that have filed lawsuits against Meta over child safety concerns.

Kentucky’s attorney general Russell Coleman called the suit the “largest consumer protection lawsuit in American history,” alleging Meta “concealed what it knew about the harm its products cause young people because looking away was more profitable.”

The state attorneys general plan to argue Meta intentionally designed products that it knew were dangerous for children while marketing them as safe, while Meta will argue it has implemented safeguards for children and was truthful about its safety to consumers.

The trial could result in a large financial penalty for Meta, as well as possible changes to the way it operates its key social media platforms, as the state attorneys general have pointed to features like “like” counts, image filters, infinite scroll features and highly personalized algorithms as intentionally addictive elements of Meta’s platforms.

What Is At Stake In The Trial?The state attorneys general behind the lawsuit are seeking severe financial penalties and changes to the way Meta operates its flagship social media platforms. The states have said they are seeking damages close to $200 billion, though Meta had claimed in court filings states are seeking damages totaling a whopping $1.4 trillion, a figure that nearly matches Meta’s market capitalization. Legal experts have cast doubt on damages reaching the $1.4 trillion mark. James Grimmelmann, a Cornell Law School professor, told the Associated Press it “seems extremely unlikely” damages would be so high, saying an “award that large would put Meta into bankruptcy, wipe out its owners, and effectively result in the states owning Meta.” The lawsuit also accuses Meta of implementing various features that “exploit young users’ psychological vulnerabilities” and “cultivated a sense of ‘fear of missing out’” that kept young users coming back to the social media apps frequently, specifically calling out features including Instagram Stories, which disappear after 24 hours, as well as autoplay features, displaying “like” counts and designing feeds with infinite scroll capabilities.

Who Is Expected To Testify?The trial could see high-profile testimony from Meta executives, including co-founder and CEO Mark Zuckerberg, who is worth $188.2 billion as of Tuesday, according to Forbes estimates, making him the No. 7 richest person in the world. According to a witness list submitted to the court, Zuckerberg is likely to testify about Meta’s knowledge of harms from its platforms, its impact on children and Meta’s “prioritization of growth over safety.” Other potential witnesses include Adam Mosseri, head of Instagram, as well as Susan Li, Meta’s chief financial officer, as well as other current and former Meta employees spanning research, safety, product design and marketing.

how long will the trial last?The trial is expected to last six to eight weeks. An eight-person jury will give a recommendation to Judge Yvonne Gonzalez Rogers, who will determine a final verdict and damages. Gonzalez Rogers, an Obama appointee, has previously presided over big tech trials, including this year’s court battle between billionaires Elon Musk and Sam Altman.

How Has Meta Responded To Lawsuits?In a statement on its website, Meta says lawsuits over child safety “misportray our company and the work we do every day to provide young people with safe, valuable experiences online.” The company touted its introduction of Teen Accounts, which include built-in safety features that limit who users can contact and the content they see on Instagram, Facebook and Messenger. In a statement dated last week, Meta criticized the state attorneys general who are behind Tuesday’s trial. “The State AGs may call this a landmark case, but their limited claims are unsubstantiated and their financial demands are vastly disproportionate,” the company said in a statement, saying they have offered “no proof anyone in their states was misled, claim benign features like having an additional Instagram account somehow harmed their residents, and attempt to penalize Meta for industry-wide challenges like age verification.”

key backgroundMeta has already been found liable in cases that have made similar arguments. In March, Meta and YouTube were found liable after a woman sued, accusing the platforms of harming her mental health with features that were designed to be addictive, like personalized algorithms and infinite scroll. Meta was ordered to pay $4.2 million, while YouTube was on the hook for $1.8 million. Earlier this month, a New Mexico judge ordered Meta to pay $567 million, adding to a $375 million fine a New Mexico court ordered the company to pay earlier this year over child safety. The judge also prohibited Meta’s apps from sending young users push notifications between 10 p.m. and 7 a.m., while also ordering Meta to limit the amount of time children spend on its apps. Meta is facing thousands of lawsuits across the country relating to child safety and social media addiction. Meta said in July its profits dropped for the second quarter of 2026, partially citing increased spending on legal fees.

further readingMeta Ordered to Pay $567 Million in New Mexico Child Safety Case (New York Times)

A trial to determine whether Meta purposely made its apps addictive to children is underway in California. That's according to a report Tuesday (Aug. 18) from Reuters, which said the case marks the most significant test to date for social media platforms facing similar youth safety lawsuits.

Independent Financial Group LLC increased its position in shares of Meta Platforms, Inc. (NASDAQ:META – Free Report) by 84.2% during the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 52,096 shares of the social networking company’s stock after buying an additional 23,820 shares during the period. Independent Financial Group LLC’s holdings in Meta Platforms were worth $29,345,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Auto Owners Insurance Co boosted its stake in shares of Meta Platforms by 76,587.7% during the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock worth $69,502,379,000 after acquiring an additional 105,154,977 shares in the last quarter. Norges Bank purchased a new position in shares of Meta Platforms in the 4th quarter valued at about $22,152,075,000. Vanguard Group Inc. increased its stake in shares of Meta Platforms by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock valued at $132,015,115,000 after purchasing an additional 7,269,279 shares in the last quarter. Corient Private Wealth LLC raised its holdings in Meta Platforms by 488.1% in the 4th quarter. Corient Private Wealth LLC now owns 5,466,595 shares of the social networking company’s stock worth $3,608,445,000 after purchasing an additional 4,537,076 shares during the period. Finally, State Street Corp raised its holdings in Meta Platforms by 5.1% in the 4th quarter. State Street Corp now owns 90,841,345 shares of the social networking company’s stock worth $59,963,463,000 after purchasing an additional 4,395,763 shares during the period. Institutional investors and hedge funds own 79.91% of the company’s stock.

Meta Platforms Stock Performance
Shares of META opened at $568.97 on Tuesday. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.23 and a current ratio of 2.23. Meta Platforms, Inc. has a 1 year low of $520.26 and a 1 year high of $790.80. The stock has a market capitalization of $1.45 trillion, a PE ratio of 21.43, a PEG ratio of 1.01 and a beta of 1.25. The stock has a 50-day simple moving average of $595.62 and a 200-day simple moving average of $619.31.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing analysts’ consensus estimates of $7.19 by ($1.01). The firm had revenue of $60.80 billion during the quarter, compared to analysts’ expectations of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The company’s revenue for the quarter was up 28.0% on a year-over-year basis. During the same period in the prior year, the company posted $7.14 earnings per share. On average, analysts predict that Meta Platforms, Inc. will post 28.5 earnings per share for the current fiscal year.

Meta Platforms Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Monday, June 15th were paid a $0.525 dividend. This represents a $2.10 annualized dividend and a yield of 0.4%. The ex-dividend date was Monday, June 15th. Meta Platforms’s dividend payout ratio is currently 7.91%.

Trending Headlines about Meta Platforms
Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Meta is reportedly considering selling excess data-center capacity to third parties, which could help monetize its substantial AI infrastructure spending and create an additional revenue stream. The plan remains exploratory. Should You Buy Meta Platforms Stock Below $600 Before Mark Zuckerberg Unveils Its AI Cloud Business?
Neutral Sentiment: Alibaba’s release of a laptop-ready Qwen model and open model weights underscores intensifying competition in AI, although the immediate financial impact on Meta is uncertain. Alibaba answers Meta’s AI challenge with new laptop-ready model
Negative Sentiment: Meta is facing a major federal trial brought by 29 state attorneys general, who allege Facebook and Instagram were deliberately designed to addict children and that the company misled the public about related risks. The states are seeking financial penalties—potentially as high as $1.4 trillion—and court-ordered product changes. Meta faces ‘astronomical’ consequences as legal fight reaches critical moment in California
Negative Sentiment: The legal overhang intensified after Meta recently lost a nearly $1 billion judgment in a similar New Mexico case. Investors are concerned that an adverse outcome could produce significant financial penalties, costly changes to platform design and broader regulatory restrictions, with thousands of related lawsuits potentially following. Meta Faces 29 States in Court Tuesday
Negative Sentiment: Investors are also scrutinizing Meta’s AI spending. Data-center construction is consuming cash, while reported off-balance-sheet financing arrangements and residual-value guarantees could create future obligations if AI assets become unprofitable or underused. What Could Meta Platforms Off Balance Sheet AI Financing Mean For Investors?

Insiders Place Their Bets
In other Meta Platforms news, COO Javier Olivan sold 3,348 shares of Meta Platforms stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $600.97, for a total transaction of $2,012,047.56. Following the transaction, the chief operating officer owned 9,498 shares of the company’s stock, valued at $5,708,013.06. The trade was a 26.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Curtis J. Mahoney sold 2,079 shares of the company’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $609.92, for a total transaction of $1,268,023.68. Following the completion of the sale, the insider owned 1,118 shares of the company’s stock, valued at approximately $681,890.56. This trade represents a 65.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 17,772 shares of company stock worth $10,823,658 over the last ninety days. Insiders own 13.53% of the company’s stock.

Wall Street Analysts Forecast Growth
META has been the topic of a number of recent analyst reports. Rosenblatt Securities lowered their price target on Meta Platforms from $1,015.00 to $883.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Susquehanna dropped their target price on shares of Meta Platforms from $900.00 to $650.00 and set a “positive” rating for the company in a report on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and issued a $800.00 price target on shares of Meta Platforms in a report on Tuesday, July 28th. UBS Group decreased their target price on shares of Meta Platforms from $766.00 to $715.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Finally, TD Cowen lowered their price target on Meta Platforms from $800.00 to $750.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $785.32.

Check Out Our Latest Research Report on META

About Meta Platforms
(Free Report)

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

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Hartford Investment Management Co. lessened its position in Meta Platforms, Inc. (NASDAQ:META – Free Report) by 2.6% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 121,404 shares of the social networking company’s stock after selling 3,221 shares during the quarter. Meta Platforms accounts for approximately 1.9% of Hartford Investment Management Co.’s portfolio, making the stock its 9th largest holding. Hartford Investment Management Co.’s holdings in Meta Platforms were worth $68,386,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Meta Platforms by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock worth $132,015,115,000 after purchasing an additional 7,269,279 shares during the period. Auto Owners Insurance Co boosted its stake in shares of Meta Platforms by 76,587.7% during the fourth quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock valued at $69,502,379,000 after purchasing an additional 105,154,977 shares during the period. State Street Corp boosted its stake in shares of Meta Platforms by 5.1% during the fourth quarter. State Street Corp now owns 90,841,345 shares of the social networking company’s stock valued at $59,963,463,000 after purchasing an additional 4,395,763 shares during the period. Geode Capital Management LLC grew its holdings in shares of Meta Platforms by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company’s stock worth $34,734,628,000 after purchasing an additional 878,396 shares during the last quarter. Finally, Capital World Investors grew its holdings in shares of Meta Platforms by 0.8% in the fourth quarter. Capital World Investors now owns 39,558,637 shares of the social networking company’s stock worth $26,112,735,000 after purchasing an additional 310,947 shares during the last quarter. Hedge funds and other institutional investors own 79.91% of the company’s stock.

Insider Activity
In other Meta Platforms news, COO Javier Olivan sold 1,258 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $600.00, for a total value of $754,800.00. Following the sale, the chief operating officer owned 1,517 shares in the company, valued at approximately $910,200. This represents a 45.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert M. Kimmitt sold 500 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $561.56, for a total transaction of $280,780.00. Following the transaction, the director directly owned 2,943 shares of the company’s stock, valued at $1,652,671.08. This represents a 14.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 17,772 shares of company stock worth $10,823,658 in the last three months. 13.53% of the stock is currently owned by insiders.

Meta Platforms Price Performance
META opened at $568.97 on Tuesday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. The company has a market cap of $1.45 trillion, a price-to-earnings ratio of 21.43, a price-to-earnings-growth ratio of 1.01 and a beta of 1.25. The stock has a fifty day simple moving average of $595.62 and a two-hundred day simple moving average of $619.31. Meta Platforms, Inc. has a 12-month low of $520.26 and a 12-month high of $790.80.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its earnings results on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing analysts’ consensus estimates of $7.19 by ($1.01). The business had revenue of $60.80 billion for the quarter, compared to the consensus estimate of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The business’s quarterly revenue was up 28.0% on a year-over-year basis. During the same quarter last year, the firm posted $7.14 EPS. Research analysts predict that Meta Platforms, Inc. will post 28.5 earnings per share for the current fiscal year.

Meta Platforms Announces Dividend
The firm also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were given a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Monday, June 15th. Meta Platforms’s dividend payout ratio (DPR) is 7.91%.

Wall Street Analyst Weigh In
META has been the subject of a number of recent analyst reports. The Goldman Sachs Group lowered their price target on shares of Meta Platforms from $815.00 to $725.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Roth Capital reaffirmed a “buy” rating on shares of Meta Platforms in a research note on Thursday, April 30th. DA Davidson cut their target price on Meta Platforms from $850.00 to $700.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Barclays reduced their price target on Meta Platforms from $830.00 to $780.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Finally, Erste Group Bank raised Meta Platforms from a “hold” rating to a “buy” rating in a research report on Tuesday, July 7th. Four research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, Meta Platforms presently has a consensus rating of “Moderate Buy” and an average target price of $785.32.

Check Out Our Latest Stock Report on Meta Platforms

Key Headlines Impacting Meta Platforms
Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Meta is reportedly considering selling excess data-center capacity to third parties, which could help monetize its substantial AI infrastructure spending and create an additional revenue stream. The plan remains exploratory. Should You Buy Meta Platforms Stock Below $600 Before Mark Zuckerberg Unveils Its AI Cloud Business?
Neutral Sentiment: Alibaba’s release of a laptop-ready Qwen model and open model weights underscores intensifying competition in AI, although the immediate financial impact on Meta is uncertain. Alibaba answers Meta’s AI challenge with new laptop-ready model
Negative Sentiment: Meta is facing a major federal trial brought by 29 state attorneys general, who allege Facebook and Instagram were deliberately designed to addict children and that the company misled the public about related risks. The states are seeking financial penalties—potentially as high as $1.4 trillion—and court-ordered product changes. Meta faces ‘astronomical’ consequences as legal fight reaches critical moment in California
Negative Sentiment: The legal overhang intensified after Meta recently lost a nearly $1 billion judgment in a similar New Mexico case. Investors are concerned that an adverse outcome could produce significant financial penalties, costly changes to platform design and broader regulatory restrictions, with thousands of related lawsuits potentially following. Meta Faces 29 States in Court Tuesday
Negative Sentiment: Investors are also scrutinizing Meta’s AI spending. Data-center construction is consuming cash, while reported off-balance-sheet financing arrangements and residual-value guarantees could create future obligations if AI assets become unprofitable or underused. What Could Meta Platforms Off Balance Sheet AI Financing Mean For Investors?

About Meta Platforms
(Free Report)

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

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Want to see what other hedge funds are holding META? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meta Platforms, Inc. (NASDAQ:META – Free Report).

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In July 2025, Meta gathered parenting influencers from all over Australia at a waterfront venue overlooking the Sydney Opera House. It was a camping-themed event and in many ways was like any other influencer affair. There were Instagram-branded tents to take pictures in, an Instagram-branded step-and-repeat, a custom-tote making station and Instagram-branded snacks and coffee cups.

But this “screen smart” event wasn’t about the photo op.

Meta was playing defense: the company had five months until the Australian government planned to enforce a new law that banned children under 16 from using social media platforms. The Silicon Valley-based firm told influencers that blanket bans on teens’ use of social media weren’t effective and recruited them to send a message to their hundreds of thousands of followers: Meta already had tools to help parents keep teens safe on Instagram.

Since 2024, Meta has tapped an army of influencers to promote its safety tools for teens. A new report by the Tech Transparency Project, a digital advocacy group, shows that whenever a government began discussing social media regulations for teens, Meta started recruiting lifestyle, parenting and mental health creators to promote parental and other safety controls the company already offers, including its accounts for users between the ages of 13 and 17, which have more restrictions than regular accounts. Meta recruited influencers through events, like the one in Australia, and paid some of them for their advocacy by sponsoring posts, according to the report.

Meta also found support from parent, advocacy and research groups that it supports financially in pushing back against teen bans or restrictions, according to the report.

Meta’s reliance on influencers to fight the bans suggests the company recognizes it can’t fight these measures, which would could cost it millions of users, alone, said Katie Paul, the director of the Tech Transparency Project. Meta needs to use influencers to spread its message because people don’t trust the company, said Paul. “The brand has become a problem,” Paul said.

Responding to questions about the report, Meta said that the firm works hard to “build strong protections for teens and effective controls for parents”.

“Blanket bans don’t keep young people safe, they simply push them toward less safe, unregulated corners of the internet,” said Edward Patterson, a spokesperson. “Where our apps remain available, such as in Australia where 16- and 17-year-olds are defaulted into Teen Accounts, we will continue working with parents and experts to ensure families are aware of our safety features, and know how to make the most of them.”

In November 2024, Australia became the first country in the world to ban teens under 16 from using social media apps. The law, which went into effect in December 2025, required social media companies to shut down existing teen accounts and reject new ones. (Meta already had rules in place that barred kids younger than 13 from opening an account.)

Concern over teen use of social media has been growing since at least 2021, when whistleblowers including Frances Haugen and Arturo Bejar shared internal Meta documents showing the company knew teens were being exposed to harmful content but didn’t work to mitigate those harms. In the US, several states sued Meta, accusing the company of deliberately making its platform addictive to younger users.

Meta has since introduced teen accounts with built-in restrictions, including limits on who can message teen users and more sensitive content filters that limit their exposure to violent or harmful videos. But concerns have remained.

Australia passed its law after a 2025 study it commissioned found that 96% of children between the ages of 10 and 15 used social media and that 71% of those children were exposed to harmful content, including fight videos, posts that encourage unhealthy eating or exercise habits and sexist or otherwise hateful posts.

Concern over teen use of social media has been growing since at least 2021. Photograph: Anna Barclay/Getty ImagesMeta has taken down 756,000 accounts it suspected belonged to teens since the ban. Meanwhile, the move to restrict or altogether ban teens from using social media has gained momentum around the world.

Indonesia became the first south-east Asian country to roll out a blanket teen social media ban in March 2026. Some states in India have issued blanket bans, while the country continues to consider regulating social media use for children. Brazil introduced the Digital Statute of Children and Adolescents in March 2026 which, among other regulations, requires strict age verification systems and children’s accounts to be linked to their parents’.

These countries represent some of the biggest markets for social media companies and Meta in particular. In all of them, Meta launched some version of its influencer campaign.

In Australia, several of the creators who attended the “Instagram Safety Camp” had paid partnerships with the company and shared posts lauding Meta for the work it was doing to keep teens safe. Tammin Sursok, an actor known for her role in Pretty Little Liars who posts about parenting, said the event was “an amazing way to hear what Instagram is doing to keep our teens safe with #instagramteenaccounts”. She cited some teen account features including parental supervision, protections from explicit images and restrictions to livestreaming and ended her post with #instagrampartner implying a paid partnership with the company.

Meta said it does not disclose the terms of individual partnerships.

One of the panels featured a representative from ReachOut Australia, an online youth mental health resource, who later shared insights from the safety camp online. ReachOut Australia lists Meta as one of its “gold” sponsors. As part of their partnership with ReachOut, Meta helped finance an online teen safety series that touted Instagram teen accounts in several episodes.

Meta said it had been working with ReachOut for the better part of a decade to create campaigns that inform users of the safety tools available to them, but that the organization had its own independent editorial voice and mission. “No partner, including Meta, reviews or approves what we publish or what our people say publicly,” a spokesperson for ReachOut Australia said.

In Indonesia, months after the government announced it was considering age restrictions for social media platforms, Meta hosted a series of events including its Instagram safety camp. Darius Sinathrya, a well-known Indonesian actor with 1.8 million followers, shared footage of one of the panels and encouraged his followers to try Meta’s safety features. “Come on, parents try this feature to make your children safer and smarter in the digital world,” he wrote in his caption.

In February 2026, Ashwini Vaishnaw, India’s electronics information technology minister, said the government was discussing age-based social media restrictions. Over the next few months, mom influencers all over India began sharing paid posts about Instagram’s teen accounts. One account with 250,000 followers, Imperfect Mom Who Travels, posted a video that showed her son starting an Instagram teen account. “Glad to see @Instagram Teen Accounts come with built-in protections designed for age-appropriate experiences from day one. #ad,” the caption reads.

That same week, a senior fellow at the New Delhi-based thinktank Observer Research Foundation argued in a column that teen social media bans are ineffective. The Observer Research Foundation received funding from Facebook India in 2022 and lists Meta as well as several other big tech firms among its partners.

Meta said it did not pay the author or organization to write the opinion piece. Observer Research Foundation did not respond to a request for comment.

Bejar, the Facebook whistleblower who worked on online safety at the company, said influencers promoting teen accounts were creating a false promise of safety and security the accounts just don’t provide.

“You can still search for suicide and self-harm content even though they promise you can’t,” Bejar said. “You can search for eating disorder content and it’s their own search recommendations that circumvent their own safety features.”

It was yet more evidence that Meta cares more about its brand than safety, Bejar said. “It’s wrong that they’re leveraging their own platform to both advertise and then also leverage creators who benefit from the platform. There’s conflicts of interest across the board to create a false and dangerous impression of security and safety for young people.”

Meta said Bejar’s experience with Instagram’s safety features predated teen accounts.

Governments around the world are scrambling to mitigate the harms of social media on teen users, and many are reaching for blanket bans or other age-based restrictions to do so. Experts are still debating whether those restrictions are effective, enforceable or the best mechanism to protect children.

In Australia, the country’s internet regulator found that more than 80% of teens were still using social media three months after the ban. Many teens also reported they weren’t asked their ages when using those platforms despite the government intending to double the penalty for tech firms that don’t comply with the law. The study highlights how difficult it is to police and enforce restrictions on digital platforms.

“We never expected that this would have 100% compliance,” said Andrew Leigh, assistant minister for productivity, competition, charities and treasury, at a conference defending the ban. “We don’t get 100% compliance out of minimum drinking age laws, but it’s still appropriate that ​we have that ​law on the ⁠books.”

In the US and the UK, digital advocacy groups such as the Electronic Frontier Foundation (EFF) and Fight for the Future, which have historically opposed many of Meta’s data-privacy practices, have argued that bans and other age-based restrictions deny young people their rights to access information and speak online, said David Greene, senior counsel at EFF.

Greene argues government intervention should be a last resort and that non-governmental alternatives – such as parental control tools provided by the companies – are better options than a government stepping in.

Paul of the Tech Transparency Project, argued Meta had had many opportunities to prove it can create a platform that’s safe for children and teens.

“Facebook and its sister platforms have been around for 20 years at this point and the company has proven that it cannot be trusted to self-regulate – so what we’re seeing is governments taking that last resort and saying: ‘OK if kids can’t be protected on these platforms we’re going to have to do it ourselves,’” said Paul.

Meta is headed to federal court in California Tuesday to face a coalition of 29 state attorneys general over claims that the company deliberately designed Facebook and Instagram to encourage compulsive use among young users. Balázs Penz reports on Bloomberg Television.

A coalition of states suing Meta Platforms (META.O) over claims Facebook and Instagram were designed in ways that harmed young users' mental health will ​begin making its case on Tuesday in California federal court in a trial that could reshape some of the most popular ‌apps on the planet.

Attorneys for Colorado, California, New Jersey and Kentucky, who are leading a bipartisan group of 29 states, will give their opening statements before an eight-person jury in Oakland that is serving expressly in an advisory capacity for U.S. District Judge Yvonne Gonzalez Rogers, who will ultimately decide the case.

The trial will test the four states’ allegations that Meta ​designed Facebook and Instagram to be addictive to children and teens and misled consumers about the safety of the platforms for young users. ​It will also address the claims of all 29 states accusing Meta of improperly collecting and using children’s personal data ⁠while they used the company’s platforms in violation of federal law.

Attorneys for Meta are expected to tell the jury that the company has made a ​huge effort to keep kids safe online. The company has argued that it has not made misleading statements about safety and the states have failed to present ​any evidence of actual harm to their residents.

Meta founder and CEO Mark Zuckerberg is expected to testify during the multiweek trial, as is Instagram head Adam Mosseri.

BIGGEST TEST YET
In terms of potential damages and implications for Meta, experts have said the trial is the biggest test yet of youth social media litigation and comes amid a broader reckoning across the ​globe over social media's effects on young users.

Meta has said the penalties could be as high as $1.4 trillion, near the company’s market cap of $1.5 trillion. The ​attorneys general have yet to specify what they are seeking in penalties, but said at a hearing last week that the amount could be closer to $200 billion.

The attorneys general ‌of Colorado, ⁠Kentucky, California and New Jersey are also asking the judge to issue an order forcing the company to implement age restrictions, eliminate infinite scroll and make other changes to its platforms nationwide.

In a statement ahead of the arguments, a Meta spokesperson said the states’ claims are unsubstantiated and the company stands by its record of creating strong protections for teens.

“The AGs offer no proof anyone in their states was misled, claim benign features like having an additional Instagram account ​somehow harmed their residents, and attempt ​to penalize Meta for industry-wide challenges ⁠like age verification,” the spokesperson said. “Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout."

A MULTISTATE INVESTIGATION
The states' lawsuit, which was filed in 2023, stems from a multistate investigation into ​Instagram and Facebook's impact on young users. The investigation was announced following disclosures by Meta whistleblower Frances Haugen, who testified ​before a U.S. Senate ⁠committee in 2021 that the company knew its products could harm young users and how to make them safer, but chose not to make those changes in favor of pursuing higher profits.

The states are expected to present a trove of internal documents and research from Meta, as well as testimony from former Meta employees and ⁠experts.

Meta and ​other social media companies like Snap Inc (SNAP.N), TikTok parent ByteDance and YouTube parent Alphabet (GOOGL.O) are ​facing growing pressure from lawmakers and in the courts. The states' lawsuit is among thousands of cases filed against the companies by states, municipalities, school districts and individuals over allegations that their products ​harm young users.

Meta has said the flood of litigation could seriously impact its business and financial results.

More than half of the states in the US have joined together in an unprecedented lawsuit against Meta that goes to trial on Tuesday, accusing the parent company of Instagram and Facebook of deliberately designing addictive products that lured in young people and caused them harm.

The jury trial is taking place in federal court in Oakland, California, and is expected to last between six and eight weeks. The jury is expected to hear from Meta CEO Mark Zuckerberg, Instagram CEO Adam Mosseri and employee turned whistleblower Arturo Béjar.

“Meta designed a dangerous product for young users, knew it to be dangerous, and then lied to children, families and the community about how dangerous it was,” said Rob Bonta, California’s attorney general. The trial proceedings will be led by attorneys representing California, Colorado, Kentucky and New Jersey, though the suit was filed by all 29 states in what is known as multidistrict litigation.

The 233-page lawsuit, first filed in October 2023, alleges that Meta regularly collects data on children under the age of 13 without parental permission in violation of federal and state laws. The lawmakers claim in court documents that Meta “refuses to abandon its use of known harmful features” and that its motives are based solely on profit to “maximize its financial gains”.

The sweeping legal proceedings could have profound consequences for the social media company. The attorneys general say that if Meta is found liable, damages could be as high as $200bn – an amount equivalent to the company’s 2025 annual revenue. The lawmakers are also asking that Meta be compelled to change the design of its products to make them safer for children, which may have longer-term effects than a fine.

Meta denies all allegations and says: “Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout.

“The State AGs may call this a landmark case, but their limited claims are unsubstantiated and their financial demands are vastly disproportionate,” the company said in a statement. “The AGs offer no proof anyone in their states was misled, claim benign features like having an additional Instagram account somehow harmed their residents, and attempt to penalize Meta for industry-wide challenges like age verification.”

The attorneys general also say Meta “developed and refined a set of psychologically manipulative” features designed to maximize people’s time on its apps. Those include an infinite scrolling recommendation algorithm, constant notification alerts, thumbs-up “likes”, and visual filters for altering one’s image.

The lawmakers say young people are especially vulnerable to falling prey to such features and that excessive time online can lead to increased depression, anxiety, eating disorders and other mental health issues.

Internal research conducted by Meta is expected to be presented at the trial, including, for instance, a survey of 2,500 teens conducted in 2019.

“Young people are acutely aware that Instagram can be bad for their mental health, yet are compelled to spend time on the app for fear of missing out on cultural and social trends,” the results read.

Mounting lawsuitsThe federal trial comes just two weeks after a judge ordered Meta to pay $567m to New Mexico in a similar case brought by the state’s attorney general. This was the second court-ordered financial penalty for Meta in New Mexico, bringing the total it is responsible for paying the state to $942m. A state trial in Tennessee is now under way

Families, school districts and other attorneys general have brought thousands of lawsuits against Meta and other social media companies in recent years. The plaintiffs hope a death-by-a-thousand-cuts legal strategy will induce Meta to change its social networks for the better.

In California, thousands of coordinated cases have been filed in state court against Meta, YouTube, TikTok and Snap. Meta and YouTube lost the first of those cases to go to trial in February, being ordered to pay $6m to the young woman who brought the suit. (TikTok and Snap settled before the case went to trial.) Two more lawsuits slated to go to trial this summer, one federal and one in California state court, also settled for undisclosed sums.

The lawsuits have borrowed from the legal approach used against tobacco companies in the 1990s, which focused on cigarettes’ addictive qualities and the makers’ knowledge that their products caused harm and resulted in a $200bn in 1998 and enforced changes to cigarettes’ marketing.

Russell Coleman, the attorney general of Kentucky, said he and his colleagues are using that strategy and aim to show the jury that “Meta concealed what it knew about the harm its products cause young people”.

“AGs are in the perfect position to get this done,” he added. “We did it with the tobacco settlement in the 1990s. We did it with the companies behind the opioid crisis. We’ll do it again with Meta.”

Meta on Tuesday will defend itself in court again over claims it addicted young people to social media, this time in the first bellwether federal trial, brought by states seeking roughly $200 billion in damages.

California, Colorado, Kentucky and New Jersey have accused the social media giant, which owns Instagram and Facebook, of harming children with technology designed to be addictive like cigarettes. Meta fueled a national youth mental health crisis and deceived users by promoting its apps as safe, the states plan to argue in U.S. District Court for the Northern District of California in Oakland.

The suit charges the company with violating federal child privacy laws and state consumer protection laws.

“Meta designed a dangerous product for young users, knew it to be dangerous and then lied to children, families and the community about how dangerous it was,” California’s attorney general, Rob Bonta, said in a statement last week.

Meta plans to argue that it put in safeguards to protect young users and that it was truthful to consumers.

The lawsuit is among thousands of personal injury and consumer protection lawsuits filed by states, school districts and individuals against Meta, YouTube, TikTok and Snap, which owns Snapchat. The cases claim that social media sites have harmed children with addictive products, drawing inspiration in part from a legal playbook used against Big Tobacco in the 1990s.

The strategy has already paid off. In March, Meta and YouTube were found liable in a landmark personal injury case in California’s Superior Court of Los Angeles County, where a young California woman was awarded $6 million in damages. This month, a New Mexico judge ordered Meta to pay damages totaling nearly $1 billion in a case brought by the state attorney general for violations of consumer protection laws. The companies have settled several other cases that were headed for trial this year.

The four states’ case — the first in a series of federal test cases — poses a significant legal threat to Meta after those earlier losses. If the states win, they have said, they will seek damages approaching $200 billion for consumer protection violations, according to a court filing. That would be nearly 14 percent of the entire stock value of the company, which stood at $1.45 trillion on Monday, according to a court filing.

Concern about social media use has mounted globally. Australia last year became the first country to bar children under 16 from using social media. Since then, Denmark, France, Germany, Spain, India, Indonesia, Malaysia and others have carried out or are considering similar rules. The European Union last month took the first step toward its own ban, which would be the largest in the world.

In the United States, lawmakers this year reintroduced the Kids Online Safety Act, a bill that would strengthen privacy for minors and allow them to opt out of algorithmic features that have been linked to compulsive use of social media. States have also passed multiple laws to protect children from social media harms.

Mark Zuckerberg, Meta’s chief executive. The company says it has installed safeguards to protect young users, and that it is being singled for challenges faced by all internet companies. — Mark Abramson for The New York Times
Meta has faced the most scrutiny. In Tennessee, a trial is underway after the state attorney general charged the company with disregarding internal research that found its platforms were hurting young users.

Defense costs are adding up. From April through June, Meta said, it spent more than $2 billion on legal expenses related to the social media addiction trials and other litigation. While that is a fraction of its $18 billion quarterly profit, thousands of similar lawsuits remain.

Meta has argued that it is being singled out for challenges faced by all internet companies, such as verifying the ages of its users. Its safeguards include its Instagram Teens feature for users 13 to 17, which makes data private by default and restricts the ability of strangers to directly message young users, the company has said.

The company has also said the case should be thrown out because of speech protections and a federal shield, Section 230 of the Communications Decency Act of 1996, which protects it from liability for what its users post. The U.S. Court of Appeals for the Ninth Circuit this month tossed Meta’s motion to dismiss the case on free speech grounds.

The state attorneys general “may call this a landmark case, but their limited claims are unsubstantiated and their financial demands are vastly disproportionate,” Liza Crenshaw, a Meta spokeswoman, said in a statement. “We’ve listened to parents, worked with experts and law enforcement and conducted in-depth research to understand the issues that matter most.”

The states are expected to argue the company has fed into a national youth mental health crisis, and has promoted its apps as safe even as Meta was aware of risks. — David Gray/Agence France-Presse — Getty Images
The four states bringing Meta to trial in Oakland were selected by Judge Yvonne Gonzalez Rogers from a group of 29 states that have sued the social media giant on claims that it violated federal child privacy and state consumer protection laws. She chose the lawsuits from California, Colorado, Kentucky and New Jersey as the best representation of the states’ cases.

The trial is expected to last six to eight weeks. An eight-person advisory jury will give a recommendation to Judge Gonzalez Rogers, who will ultimately determine a verdict and damages.

The states plan to call prominent witnesses including Meta’s chief executive, Mark Zuckerberg, to testify. The attorneys general also plan to use internal documents and interviews with current and former Meta employees to show the company internally discussed how tools like infinite scroll and beauty filters — photo effects that alter a person’s appearance — contributed to compulsive use and anxiety among young users. Still, the company promoted its platforms as safe for youths, the states claim.

The states also plan to argue that the tools that Meta promotes as teen safety features are rarely used.

The state attorneys general have asked for changes to the company’s technology to better protect young users. Those include bans on infinite scrolling, auto-play of content and “like” buttons for users under the age of 18. They have also asked for bans on beauty filters that can contribute to body image and mental health issues, and engagement-optimized algorithms that lead users to additional content.

Meta Platforms (META -3.54%) stock is down Monday, falling 3.8% as of 2:43 p.m. ET. The S&P 500 and the Nasdaq Composite are also sliding, down 0.4 and 0.3%, respectively.

Just weeks after the social media giant lost a high-profile case in New Mexico, it will once again defend itself in court tomorrow -- this time, in California.

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29 states are suing Meta over child safety Oral arguments begin Tuesday morning in a major, unified case brought by Attorneys General from 29 states. Led by California AG Rob Bonta, Meta is facing allegations that it knowingly fostered addictive behavior in teens and children.

Meta has denied wrongdoing and said that the case's "limited claims are unsubstantiated and their financial demands are vastly disproportionate."

Image source: Getty Images.

This follows Meta's recent loss in a similar case in New Mexico earlier this month. The company will be forced to pay $1 billion in damages and change some of its policies.

What a loss could mean for Meta and big tech While losing the New Mexico case was undoubtedly damaging, a loss in the current case could be significantly more so -- and not just for Meta. Some in the industry are saying this could be a sort of "big tobacco moment" for big tech.

I think that risk is real. A loss in this case would have far-reaching consequences for Meta and social media companies across the board.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

Social media giant Meta is heading to court in a case brought by a group of state attorneys general who claim the company designed its social media platforms to be addictive and misled the public about potential risks.

The trial is expected to begin with opening statements on Tuesday in the U.S. District Court for the Northern District of California in Oakland after the two sides went through the jury selection process last week and Judge Yvonne Gonzalez Rogers turned down Meta's request for the case to be dismissed. The trial is expected to last four to six weeks, with Meta CEO Mark Zuckerberg expected to testify.

Attorneys general from California, Colorado, Kentucky and New Jersey first filed the lawsuit in 2023 after a multistate investigation into the impact of Facebook and Instagram on young users. They argue that the platforms were designed to be addictive and that the company downplayed the potential impact on young people, while also alleging Meta violated federal law when it collected personal information from children.

Attorneys general from California, Colorado, Kentucky and New Jersey first filed the lawsuit in 2023 after a multistate investigation into the impact of Facebook and Instagram on young users. (Mike Blake/Reuters)

Meta, which is the parent company of Facebook and Instagram, has denied wrongdoing and disputes claims that its social media platforms caused the harm alleged by states. It also argues that "social media addiction" isn't an officially recognized psychiatric diagnosis, which will be a significant point of contention at trial.

FOUR STATES SEEKING $1.4 TRILLION IN PENALTIES IN CHILD SOCIAL MEDIA ADDICTION TRIAL, META SAYS

California Attorney General Rob Bonta issued a statement last week after the court allowed the case to proceed, saying, "Meta designed a dangerous product for young users, knew it to be dangerous, and then lied to children, families, and the community about how dangerous it was."

A Meta spokesperson pushed back on the states' case against the company and said in a statement to FOX Business that the "limited claims are unsubstantiated and their financial demands are vastly disproportionate."

"The AGs offer no proof anyone in their states was misled, claim benign features like having an additional Instagram account somehow harmed their residents, and attempt to penalize Meta for industry-wide challenges like age verification. Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout," the company spokesperson said, adding that the company stands by its "record of creating strong protections for teens, and look forward to making our case in court."

Ticker Security Last Change Change % META META PLATFORMS INC. 589.85 -5.12 -0.86% Meta has argued that the damages sought by the state attorneys general could reach as high as $1.4 trillion, which is nearly the size of the company's market capitalization – though the AGs haven't disclosed the amount they plan to seek at trial and will likely do so once the trial begins.

NEW MEXICO COURT ORDERS META TO PAY $567M, OVERHAUL TEEN PROTECTIONS

Monte Mann, a partner at Armstrong Teasdale, told FOX Business in an interview that this will be a "bellwether case" for the theory that social media platforms were designed to be addictive and have harmful effects on young users.

Mann said that as someone who has tried cases like this one, he will be paying close attention to what internal Meta documents indicate about the company's knowledge of the allegedly compulsive nature of its products and their mental health impact, saying those documents "may be the star witness in the case."

"I will be very interested to see what the internal Meta, Facebook, Instagram documents say about what they knew of the compulsive nature of these products and services; when they knew it; whether they tried to enhance their design elements to take advantage of those things, what they disclosed to the public," he said.

Meta has argued that the damages sought by the state attorneys general could reach as high as $1.4 trillion. (Mike Blake/Reuters)

Mann also noted that Judge Gonzalez Rogers appointed an advisory jury in the case, which can provide feedback and recommendations on community standards for children's use of social media that she may consider.

META, OTHER COMPANIES MUST FACE THOUSANDS OF LAWSUITS OVER CHILD SOCIAL MEDIA ADDICTION, APPEALS COURT RULES

The Oakland trial is the latest high-profile case involving social media companies like Meta, which have faced numerous lawsuits brought by individuals, school districts and state governments over the alleged impacts of social media use on children.

A ruling in another prominent case was delivered earlier this month when a state court in New Mexico ordered Meta to pay $567 million and to overhaul its protections for teen users on Facebook and Instagram.

That followed a prior ruling from March which ordered Meta to pay $375 million for violating state law, with the company's total liability in the case at nearly $942 million.

Meta told FOX Business after the most recent ruling that it disagreed with the decision and vowed to appeal, explaining that the company is "confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts."

GET FOX BUSINESS ON THE GO BY CLICKING HERE

FOX Business' Michael Sinkewicz, Sumner Park and Reuters contributed to this report.

Meta Platforms Inc. (NASDAQ:META) stock fell about 4% on Monday as investors weighed mounting legal risks and questions about the company’s AI strategy. The decline also came as Communication Services ranked as the market’s weakest sector.

The Nasdaq fell 0.14%, while the S&P 500 dropped 0.38%.

California Trial Puts Meta’s Legal Risks In FocusMeta faces a case brought by 29 state attorneys general. They accuse the company of illegally collecting children’s data and misleading consumers about safety. They also allege that Facebook and Instagram included features designed to encourage addictive behavior among young users.

U.S. District Judge Yvonne Gonzalez Rogers will decide the case. An eight-person advisory jury will also issue a nonbinding verdict.

Meta has said potential damages could reach $1.4 trillion. However, attorneys for the states have cited about $200 billion as a more likely figure, CNBC reported Monday.

The trial follows Meta’s recent losses in New Mexico. A jury there ordered the company to pay $375 million. A judge later directed another $567 million into an abatement fund. Meta plans to appeal.

The states also want Meta to delete certain children’s data and algorithms trained on that information. They are seeking the removal of features they describe as addictive.

Meta disputes the allegations. It has called the claims “unsubstantiated” and the financial demands “vastly disproportionate.”

New Mexico Attorney General Raúl Torrez has warned that a large judgment could affect Meta’s ability to fund future investments. Meta’s AI spending could reach $145 billion this year.

McNamee Questions Meta’s AI PositionThe legal uncertainty comes as Elevation Partners’ Roger McNamee questions Meta’s position in the AI race. He called CEO Mark Zuckerberg’s open-source AI vision “science fiction that is untethered from reality.”

Speaking on CNBC, McNamee said Zuckerberg’s recent manifesto aims to create the impression that Meta is well positioned in AI while also improving his reputation.

McNamee also challenged broader assumptions about the AI boom. He urged investors to reconsider whether current large language models can deliver the economic transformation markets expect.

“If I owned the stocks today, I’d be sitting there and asking the question, ‘Are all my assumptions still sound?’” McNamee said. “Because I think a few of them aren’t.”

He argued that large language models rely on historical observations to generate the most likely response. That approach, he said, raises questions about how many economically valuable uses require an “average result.”

Meta Stock Remains Below Key Moving AveragesMeta shares remain under pressure from a technical perspective. The stock trades 4.2% below its 20-day simple moving average and 5.1% below its 50-day average.

It also sits 6.9% below its 100-day average and 9.7% below its 200-day average. In addition, the stock’s MACD remains below its signal line, pointing to weak momentum.

Meta shares have fallen 26.28% over the past 12 months. The stock’s 52-week range is $520.26 to $796.25.

Analysts Remain BullishWall Street remains positive despite the recent weakness. Meta carries a Buy consensus rating and an average price forecast of $767.42.

UBS maintained a Buy rating while lowering its price forecast to $715 on July 30. Baird kept an Outperform rating and cut its forecast to $750. Goldman Sachs maintained a Buy rating and lowered its forecast to $725.

META Price ActionMETA Price Action: Meta Platforms shares were down 4.11% at $565.63 at the time of publication Monday, according to Benzinga Pro data.

Image via Shutterstock

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Less than two weeks after a loss in New Mexico, Meta faces a much bigger legal test in a case being co-led by California's attorney general. Opening arguments in AG Rob Bonta's case against Meta begin on Tuesday, as more states try to force the social media company to make design changes to its apps.

17.8.2026 09:06

Pomalejší rozjezd

Slabší ekonomická data z konce týdne stojí za sérií tří ztrát v řadě pro USD, sázky na zvýšení sazeb v USA poklesly (nyní cca jen 30 % pravděpodobnost v září). Co se týče akciových trhů, zámořské futures kontrakty nyní posilují +0,2 % a téměř podobně se staví na úvod Evropa. Asie přes noc přidala +0,3 %. Ceny ropy Brent se obchodují na 88,5 USD, minulý týden přitom posílila téměř +6 %. Geopolitické nejistota kolem situace na Blízkém východě zůstává sledovaným faktorem. Dnes vyprší příměří mezi USA a Íránem. Z firemních zpráv Stripe dokončil dohodou o akvizici OpenRouter za více než 7 mld. USD. Anthropic sděluje investorům, že tržby za 2Q vzrostly nejméně 14krát proti r.2025. Alibaba informovala, že její otevřené Ai modely nashromáždily více než 3 mld. stažení po celém světě za půl roku, čímž předstihly modely Meta i Alphabet. Praha zřejmě vstoupí do nového týdne v pomalejším tempu. V pátek se dařilo akciím CSG (+3,3 %), které tak i díky lepšímu sentimentu v sektoru rostly po 4. v řadě. Titul však může mít u mety 500 Kč silnější rezistenci.

Pavel Hadroušek, makléř, Fio banka, a.s.

Comprehensive Financial Consultants Institutional Inc. boosted its stake in Meta Platforms, Inc. (NASDAQ:META – Free Report) by 21.7% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 4,930 shares of the social networking company’s stock after purchasing an additional 879 shares during the period. Comprehensive Financial Consultants Institutional Inc.’s holdings in Meta Platforms were worth $2,777,000 at the end of the most recent reporting period.

Other large investors have also bought and sold shares of the company. Ashton Thomas Securities LLC grew its stake in Meta Platforms by 17.4% in the first quarter. Ashton Thomas Securities LLC now owns 18,000 shares of the social networking company’s stock valued at $10,299,000 after acquiring an additional 2,670 shares during the period. Keybank National Association OH increased its holdings in shares of Meta Platforms by 15.7% during the fourth quarter. Keybank National Association OH now owns 133,798 shares of the social networking company’s stock valued at $88,319,000 after acquiring an additional 18,169 shares in the last quarter. WMS Group LLC acquired a new position in shares of Meta Platforms during the fourth quarter worth approximately $876,000. Consolidated Investment Group LLC raised its position in shares of Meta Platforms by 61.2% during the fourth quarter. Consolidated Investment Group LLC now owns 7,900 shares of the social networking company’s stock worth $5,215,000 after purchasing an additional 3,000 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in shares of Meta Platforms by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock worth $132,015,115,000 after purchasing an additional 7,269,279 shares in the last quarter. 79.91% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In Several research firms recently issued reports on META. Susquehanna reduced their price target on shares of Meta Platforms from $900.00 to $650.00 and set a “positive” rating for the company in a research report on Thursday, July 30th. DA Davidson lowered their price objective on shares of Meta Platforms from $850.00 to $700.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Rothschild & Co Redburn raised their price objective on shares of Meta Platforms from $900.00 to $1,000.00 and gave the company a “buy” rating in a research note on Tuesday, July 21st. Erste Group Bank upgraded shares of Meta Platforms from a “hold” rating to a “buy” rating in a report on Tuesday, July 7th. Finally, Benchmark assumed coverage on shares of Meta Platforms in a research report on Tuesday, June 2nd. They set a “buy” rating for the company. Four analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $785.32.

Get Our Latest Stock Report on META

Insider Buying and Selling at Meta Platforms In related news, CFO Susan J. Li sold 9,195 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $607.84, for a total value of $5,589,088.80. Following the completion of the transaction, the chief financial officer directly owned 13,186 shares of the company’s stock, valued at approximately $8,014,978.24. This trade represents a 41.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Andrew Bosworth sold 7,847 shares of Meta Platforms stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $607.83, for a total transaction of $4,769,642.01. Following the completion of the transaction, the chief technology officer owned 414 shares of the company’s stock, valued at $251,641.62. This represents a 94.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 36,280 shares of company stock worth $22,075,696 over the last ninety days. Company insiders own 13.53% of the company’s stock.

Meta Platforms Stock Down 0.9% Shares of NASDAQ META opened at $589.85 on Friday. Meta Platforms, Inc. has a one year low of $520.26 and a one year high of $796.25. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23. The business’s fifty day moving average price is $595.94 and its 200-day moving average price is $620.41. The stock has a market capitalization of $1.50 trillion, a PE ratio of 22.22, a P/E/G ratio of 1.01 and a beta of 1.25.

Meta Platforms (NASDAQ:META – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing the consensus estimate of $7.19 by ($1.01). Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The firm had revenue of $60.80 billion for the quarter, compared to the consensus estimate of $60.22 billion. During the same quarter in the previous year, the company posted $7.14 EPS. The firm’s revenue was up 28.0% compared to the same quarter last year. On average, equities research analysts anticipate that Meta Platforms, Inc. will post 28.5 EPS for the current year.

Meta Platforms Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Monday, June 15th were given a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Monday, June 15th. Meta Platforms’s dividend payout ratio (DPR) is currently 7.91%.

Meta Platforms News Summary Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Analysts remain constructive on Meta’s long-term outlook, citing 28% revenue growth, resilient advertising demand and additional monetization opportunities in WhatsApp. Some commentary argues that the market is assigning little value to future AI and messaging revenue streams. Meta Has $27 Billion That Isn’t On Its Balance Sheet Positive Sentiment: Meta released Glimmer, an open-weight AI model that users can download and run on their own hardware, supporting Mark Zuckerberg’s strategy of broadening access to AI. The move could strengthen developer adoption and Meta’s competitive position, although its financial payoff is uncertain. Meta’s open AI, and a $250M deal gone very wrong Neutral Sentiment: Meta removed approximately 756,000 suspected under-16 accounts in Australia—462,000 from Instagram and 294,000 from Facebook—as it enforces the country’s youth social-media restrictions. The action demonstrates regulatory compliance but may raise moderation costs and reduce engagement among younger users. Meta says it has taken down 756,000 Australian teen accounts Neutral Sentiment: Institutional trading was mixed: Dodge & Cox increased its position by 1.47 million shares, while Sands Capital and Columbus Hill reduced their stakes. These transactions may influence sentiment but do not by themselves change Meta’s fundamentals. Dodge and Cox boosts Meta Platforms stake Negative Sentiment: A Ninth Circuit ruling removed a procedural barrier to more than 3,000 lawsuits alleging Meta’s product features harm young users. The court did not determine liability, but the decision allows the cases to proceed and adds potential litigation costs, damages and pressure to change platform design. How Serious Are Thousands of Addiction Lawsuits for Meta and Snap? Negative Sentiment: Investors remain concerned that Meta’s roughly $145 billion AI investment plan and major data-center projects could produce diminishing returns, compress margins and weigh on free cash flow before monetization catches up. Meta: Diminishing Q2 CapEx ROI Is Alarming Negative Sentiment: Meta COO Javier Olivan disclosed additional sales under a pre-arranged Rule 10b5-1 plan, while several funds also trimmed holdings. Although planned insider sales are not necessarily bearish, they can add to near-term selling pressure. Meta COO insider stock sale Meta Platforms Company Profile (Free Report)

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

See Also Five stocks we like better than Meta Platforms Is Best Buy the AI Winner Hiding in the Electronics Aisle? Applied Materials Beat Everything but Wall Street’s Expectations for Margins Back From Orbit, Intuitive Machines’ Share Price Enters the Buy Zone Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing Want to see what other hedge funds are holding META? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meta Platforms, Inc. (NASDAQ:META – Free Report).

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Posted by Defense World Staff on Aug 16th, 2026

Burney Co. lowered its stake in shares of Meta Platforms, Inc. (NASDAQ:META – Free Report) by 26.9% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 55,779 shares of the social networking company’s stock after selling 20,474 shares during the quarter. Meta Platforms accounts for 0.8% of Burney Co.’s holdings, making the stock its 14th biggest holding. Burney Co.’s holdings in Meta Platforms were worth $31,420,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Brighton Jones LLC increased its position in Meta Platforms by 1.7% during the fourth quarter. Brighton Jones LLC now owns 34,551 shares of the social networking company’s stock valued at $20,230,000 after acquiring an additional 570 shares during the last quarter. Revolve Wealth Partners LLC raised its stake in shares of Meta Platforms by 10.2% in the fourth quarter. Revolve Wealth Partners LLC now owns 9,456 shares of the social networking company’s stock valued at $5,537,000 after acquiring an additional 875 shares during the period. Headwater Capital Co Ltd lifted its holdings in shares of Meta Platforms by 294.7% in the 1st quarter. Headwater Capital Co Ltd now owns 150,000 shares of the social networking company’s stock worth $86,454,000 after acquiring an additional 112,000 shares during the last quarter. Dymon Asia Capital Singapore PTE. LTD. bought a new stake in shares of Meta Platforms in the 2nd quarter worth about $213,000. Finally, Capital & Planning LLC bought a new stake in shares of Meta Platforms in the 2nd quarter worth about $322,000. Hedge funds and other institutional investors own 79.91% of the company’s stock.

Meta Platforms Trading Down 0.9% Shares of META opened at $589.85 on Friday. Meta Platforms, Inc. has a 1-year low of $520.26 and a 1-year high of $796.25. The company has a 50-day moving average of $595.94 and a 200 day moving average of $620.41. The firm has a market capitalization of $1.50 trillion, a price-to-earnings ratio of 22.22, a PEG ratio of 1.01 and a beta of 1.25. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23.

Meta Platforms (NASDAQ:META – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.19 by ($1.01). The company had revenue of $60.80 billion during the quarter, compared to analysts’ expectations of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. Meta Platforms’s quarterly revenue was up 28.0% on a year-over-year basis. During the same period last year, the firm earned $7.14 earnings per share. On average, research analysts expect that Meta Platforms, Inc. will post 28.5 EPS for the current year.

Meta Platforms Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were paid a $0.525 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.10 annualized dividend and a yield of 0.4%. Meta Platforms’s dividend payout ratio is 7.91%.

Insider Transactions at Meta Platforms In other Meta Platforms news, CFO Susan J. Li sold 9,195 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $607.84, for a total transaction of $5,589,088.80. Following the transaction, the chief financial officer directly owned 13,186 shares in the company, valued at $8,014,978.24. This trade represents a 41.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Curtis J. Mahoney sold 2,079 shares of Meta Platforms stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $609.92, for a total value of $1,268,023.68. Following the sale, the insider directly owned 1,118 shares of the company’s stock, valued at approximately $681,890.56. This trade represents a 65.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 36,280 shares of company stock worth $22,075,696 in the last ninety days. 13.53% of the stock is owned by company insiders.

Trending Headlines about Meta Platforms Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Analysts remain constructive on Meta’s long-term outlook, citing 28% revenue growth, resilient advertising demand and additional monetization opportunities in WhatsApp. Some commentary argues that the market is assigning little value to future AI and messaging revenue streams. Meta Has $27 Billion That Isn’t On Its Balance Sheet Positive Sentiment: Meta released Glimmer, an open-weight AI model that users can download and run on their own hardware, supporting Mark Zuckerberg’s strategy of broadening access to AI. The move could strengthen developer adoption and Meta’s competitive position, although its financial payoff is uncertain. Meta’s open AI, and a $250M deal gone very wrong Neutral Sentiment: Meta removed approximately 756,000 suspected under-16 accounts in Australia—462,000 from Instagram and 294,000 from Facebook—as it enforces the country’s youth social-media restrictions. The action demonstrates regulatory compliance but may raise moderation costs and reduce engagement among younger users. Meta says it has taken down 756,000 Australian teen accounts Neutral Sentiment: Institutional trading was mixed: Dodge & Cox increased its position by 1.47 million shares, while Sands Capital and Columbus Hill reduced their stakes. These transactions may influence sentiment but do not by themselves change Meta’s fundamentals. Dodge and Cox boosts Meta Platforms stake Negative Sentiment: A Ninth Circuit ruling removed a procedural barrier to more than 3,000 lawsuits alleging Meta’s product features harm young users. The court did not determine liability, but the decision allows the cases to proceed and adds potential litigation costs, damages and pressure to change platform design. How Serious Are Thousands of Addiction Lawsuits for Meta and Snap? Negative Sentiment: Investors remain concerned that Meta’s roughly $145 billion AI investment plan and major data-center projects could produce diminishing returns, compress margins and weigh on free cash flow before monetization catches up. Meta: Diminishing Q2 CapEx ROI Is Alarming Negative Sentiment: Meta COO Javier Olivan disclosed additional sales under a pre-arranged Rule 10b5-1 plan, while several funds also trimmed holdings. Although planned insider sales are not necessarily bearish, they can add to near-term selling pressure. Meta COO insider stock sale Wall Street Analyst Weigh In Several equities analysts recently commented on the stock. UBS Group cut their price target on shares of Meta Platforms from $766.00 to $715.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Arete Research set a $735.00 price objective on shares of Meta Platforms and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. DA Davidson dropped their target price on Meta Platforms from $850.00 to $700.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. JPMorgan Chase & Co. restated a “neutral” rating and set a $725.00 target price (down from $825.00) on shares of Meta Platforms in a research report on Thursday, April 30th. Finally, Monness Crespi & Hardt cut their target price on Meta Platforms from $890.00 to $730.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Four research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $785.32.

View Our Latest Report on Meta Platforms

About Meta Platforms (Free Report)

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

See Also Five stocks we like better than Meta Platforms Is Best Buy the AI Winner Hiding in the Electronics Aisle? Applied Materials Beat Everything but Wall Street’s Expectations for Margins Back From Orbit, Intuitive Machines’ Share Price Enters the Buy Zone Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing Want to see what other hedge funds are holding META? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meta Platforms, Inc. (NASDAQ:META – Free Report).

Receive News & Ratings for Meta Platforms Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Meta Platforms and related companies with MarketBeat.com's FREE daily email newsletter.

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BayBridge Capital Group LLC lowered its holdings in Meta Platforms, Inc. (NASDAQ:META – Free Report) by 67.4% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 837 shares of the social networking company’s stock after selling 1,729 shares during the quarter. BayBridge Capital Group LLC’s holdings in Meta Platforms were worth $471,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Vanguard Group Inc. raised its position in Meta Platforms by 3.8% in the fourth quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock worth $132,015,115,000 after acquiring an additional 7,269,279 shares during the period. Auto Owners Insurance Co raised its holdings in Meta Platforms by 76,587.7% in the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock worth $69,502,379,000 after purchasing an additional 105,154,977 shares during the period. State Street Corp raised its holdings in Meta Platforms by 5.1% in the 4th quarter. State Street Corp now owns 90,841,345 shares of the social networking company’s stock worth $59,963,463,000 after purchasing an additional 4,395,763 shares during the period. Geode Capital Management LLC lifted its position in Meta Platforms by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company’s stock valued at $34,734,628,000 after purchasing an additional 878,396 shares in the last quarter. Finally, Capital World Investors grew its holdings in Meta Platforms by 0.8% during the fourth quarter. Capital World Investors now owns 39,558,637 shares of the social networking company’s stock valued at $26,112,735,000 after purchasing an additional 310,947 shares during the period. 79.91% of the stock is owned by institutional investors.

Meta Platforms News Roundup Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Analysts remain constructive on Meta’s long-term outlook, citing 28% revenue growth, resilient advertising demand and additional monetization opportunities in WhatsApp. Some commentary argues that the market is assigning little value to future AI and messaging revenue streams. Meta Has $27 Billion That Isn’t On Its Balance Sheet Positive Sentiment: Meta released Glimmer, an open-weight AI model that users can download and run on their own hardware, supporting Mark Zuckerberg’s strategy of broadening access to AI. The move could strengthen developer adoption and Meta’s competitive position, although its financial payoff is uncertain. Meta’s open AI, and a $250M deal gone very wrong Neutral Sentiment: Meta removed approximately 756,000 suspected under-16 accounts in Australia—462,000 from Instagram and 294,000 from Facebook—as it enforces the country’s youth social-media restrictions. The action demonstrates regulatory compliance but may raise moderation costs and reduce engagement among younger users. Meta says it has taken down 756,000 Australian teen accounts Neutral Sentiment: Institutional trading was mixed: Dodge & Cox increased its position by 1.47 million shares, while Sands Capital and Columbus Hill reduced their stakes. These transactions may influence sentiment but do not by themselves change Meta’s fundamentals. Dodge and Cox boosts Meta Platforms stake Negative Sentiment: A Ninth Circuit ruling removed a procedural barrier to more than 3,000 lawsuits alleging Meta’s product features harm young users. The court did not determine liability, but the decision allows the cases to proceed and adds potential litigation costs, damages and pressure to change platform design. How Serious Are Thousands of Addiction Lawsuits for Meta and Snap? Negative Sentiment: Investors remain concerned that Meta’s roughly $145 billion AI investment plan and major data-center projects could produce diminishing returns, compress margins and weigh on free cash flow before monetization catches up. Meta: Diminishing Q2 CapEx ROI Is Alarming Negative Sentiment: Meta COO Javier Olivan disclosed additional sales under a pre-arranged Rule 10b5-1 plan, while several funds also trimmed holdings. Although planned insider sales are not necessarily bearish, they can add to near-term selling pressure. Meta COO insider stock sale Analyst Ratings Changes Several brokerages have recently commented on META. DA Davidson decreased their price objective on shares of Meta Platforms from $850.00 to $700.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Rosenblatt Securities cut their price target on Meta Platforms from $1,015.00 to $883.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. UBS Group decreased their price target on Meta Platforms from $766.00 to $715.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. TD Cowen lowered their price objective on Meta Platforms from $800.00 to $750.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Finally, Monness Crespi & Hardt dropped their price objective on Meta Platforms from $890.00 to $730.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, Meta Platforms presently has an average rating of “Moderate Buy” and an average target price of $785.32.

Get Our Latest Report on Meta Platforms

Meta Platforms Stock Down 0.9% Shares of META stock opened at $589.85 on Friday. Meta Platforms, Inc. has a 1-year low of $520.26 and a 1-year high of $796.25. The company has a market cap of $1.50 trillion, a price-to-earnings ratio of 22.22, a price-to-earnings-growth ratio of 1.01 and a beta of 1.25. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23. The stock’s fifty day moving average price is $595.94 and its 200 day moving average price is $620.41.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing the consensus estimate of $7.19 by ($1.01). Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The business had revenue of $60.80 billion for the quarter, compared to analyst estimates of $60.22 billion. During the same quarter in the previous year, the firm posted $7.14 earnings per share. The business’s revenue was up 28.0% on a year-over-year basis. On average, research analysts expect that Meta Platforms, Inc. will post 28.5 earnings per share for the current fiscal year.

Meta Platforms Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Monday, June 15th were issued a $0.525 dividend. This represents a $2.10 annualized dividend and a yield of 0.4%. The ex-dividend date was Monday, June 15th. Meta Platforms’s dividend payout ratio is presently 7.91%.

Insiders Place Their Bets In other Meta Platforms news, COO Javier Olivan sold 1,258 shares of the firm’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $600.00, for a total transaction of $754,800.00. Following the completion of the sale, the chief operating officer owned 1,517 shares of the company’s stock, valued at $910,200. This trade represents a 45.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert M. Kimmitt sold 500 shares of the business’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $561.56, for a total value of $280,780.00. Following the completion of the sale, the director owned 2,943 shares in the company, valued at $1,652,671.08. This represents a 14.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 36,280 shares of company stock valued at $22,075,696 over the last ninety days. Corporate insiders own 13.53% of the company’s stock.

Meta Platforms Profile (Free Report)

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

Featured Stories Five stocks we like better than Meta Platforms Is Best Buy the AI Winner Hiding in the Electronics Aisle? Applied Materials Beat Everything but Wall Street’s Expectations for Margins Back From Orbit, Intuitive Machines’ Share Price Enters the Buy Zone Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing

Receive News & Ratings for Meta Platforms Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Meta Platforms and related companies with MarketBeat.com's FREE daily email newsletter.

Plaintiff attorneys and Democratic attorneys general want to turn social media into the next Big Tobacco.

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Meta faces a landmark federal trial brought by 29 states over allegations that Facebook and Instagram were deliberately designed to addict young users and that the company improperly collected children's data. Bloomberg News Tech Reporter Alexandra Levine joins Joe Mathieu and Carol Massar on Bloomberg This Weekend to explain that the case could expose Meta to substantial penalties and potentially more consequential court-ordered changes to how its platforms operate.