Meta is a social media leader, and this has translated into $200 billion in annual revenue. Investors, focused on Meta's heavy spending on AI, have shied away from the stock in recent times.
Artificial intelligence was supposed to make workers more productive. Instead, companies are increasingly discovering that the most productive worker can be one they don't have to employ.
As governments and regulators around the world intensify scrutiny of social media's impact on children, Meta's landmark US settlement marks a major shift in how technology companies may be held accountable for the way their platforms are designed and used. Meta has agreed to overhaul parts of Instagram and Facebook in the United States and pay up to $18 billion to settle a landmark lawsuit brought by dozens of states that accused the social media giant of deliberately designing its platforms to addict children and exposing young users to serious mental health harms.
The company is too powerful, the government says, then loads it up with new obligations that require more power.
Earlier this week, Meta agreed to pay $18 billion and make sweeping changes to how minors access its social networks to settle a lawsuit brought by 29 states. But the eye-popping settlement figure wasn't what caught the attention of the Equity podcast team.
Meta agreed to an $18 billion settlement to resolve claims that it designed Instagram and Facebook to addict children, misled the public about the dangers of its platforms, and illegally collected, retained and used children's data. The settlement includes changes to how teens experience the platforms, like a two-hour daily time limit and muted notifications during school hours.
Meta Platforms' closed-loop liquid cooling reduces water use, enables denser GPU racks, and supports its push to scale AI computing capacity.
Meta Platforms (META) reported earnings 30 days ago. What's next for the stock?
Meta Platforms NASDAQ: META just put a massive legal case in the rearview mirror, albeit at a very high cost. In a legal battle that involved several U.S. states, Meta has agreed to payments of up to approximately $18 billion.
Meta shares have shed more than 23% over the past year, and a brutal Q2 report gave bears plenty of ammunition. But our proprietary model sees a very different story forming underneath the selloff.
Meta's India and Southeast Asia vice president, Sandhya Devanathan, is leaving the social media giant to join OpenAI, the ChatGPT maker told TechCrunch.
Every dip in Meta stock triggers the same response: another buy. With capex fears mounting and a trillion-dollar lawsuit underway, the case for adding shares keeps getting harder to ignore.