New Mexico Sues Meta for Failing to Protect Child Users
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy META?
Source: CNBC
- Legal Action Intensifies: New Mexico has filed a lawsuit against Meta, alleging the company failed to protect apps like Facebook and Instagram from online predators targeting child users, which could lead to significant legal repercussions for Meta.
- Serious Allegations: Attorney General Raúl Torrez claims that Meta is accused of “steering and connecting users, including children, to sexually explicit and exploitative materials,” which not only affects virtual spaces but may also lead to real-world child exploitation.
- Industry-Wide Implications: Experts have noted that this case resembles lawsuits against “Big Tobacco” in the 1990s, potentially having far-reaching effects on Meta and the broader social media industry, especially as public concern over social media safety grows.
- Witness Testimony Scheduled: Meta CEO Mark Zuckerberg and Instagram head Adam Mosseri are scheduled to testify in the upcoming trial, highlighting the high stakes and potential public impact of this case.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 649.810
Low
655.15
Averages
824.71
High
1117
Current: 649.810
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Profitability: Meta anticipates Q1 2026 revenues between $53.5 billion and $56.5 billion, implying growth rates as high as 34%, and despite spending pressures, the company maintains strong cash flow and profitability metrics.
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- Investor Strategy Adjustments: In light of market risks, investors may need to reassess their portfolios, considering a more balanced allocation between tech stocks and other sectors to mitigate potential losses.
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