Zuckerberg to Testify in Landmark Social Media Safety Trial
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22 hours ago
0mins
Should l Buy META?
Source: Newsfilter
- Trial Context: Meta CEO Mark Zuckerberg is set to testify in Los Angeles Superior Court as part of a landmark trial likened to the social media industry's 'Big Tobacco' moment, focusing on a young woman's allegations of social media addiction, highlighting widespread public concern over social media safety.
- Allegations: Lawyers for the plaintiff claim that Meta, YouTube, TikTok, and Snap misled the public about the safety of their services, knowing that their app designs and certain features harmed young users' mental health; Meta denies these allegations, asserting that the jury must determine whether Instagram was a substantial factor in the plaintiff's mental health struggles.
- Industry Response: Instagram chief Adam Mosseri testified last week that while problematic social media usage exists, he does not equate it with clinical addiction, a viewpoint that may influence public perceptions of social media use and spark broader discussions about its impacts.
- Future Trials: In addition to the Los Angeles trial, Meta faces another significant trial in New Mexico, where the state attorney general alleges that the company failed to protect children and young users from online predators, indicating increasing legal and public scrutiny on social media companies.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 639.290
Low
655.15
Averages
824.71
High
1117
Current: 639.290
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.
Meta to Invest $65M in Politicians Favoring AI Industry
- Investment Scale: Meta is set to invest $65 million in 2023 to support state politicians favorable to the artificial intelligence industry, marking its largest election investment to date and indicating a growing emphasis on political engagement.
- New Super PACs Established: The company is quietly launching two new super PACs, one backing Republicans and the other supporting Democrats, aiming to leverage political influence to counter regulatory threats to the AI sector.
- Funding Flow and Utilization: Last year, Meta allocated $45 million to the American Technology Excellence Project, with expectations that these funds will flow into the newly established PACs, thereby enhancing the company's political clout.
- Initial Spending Plans: Meta's expenditures are set to commence this week in Illinois and Texas, primarily backing incumbent Democratic and Republican candidates, reflecting the company's strategic inclination to maintain the existing political landscape.
See More
Meta Plans to Launch New Smartwatch This Year
- New Product Launch: Meta is planning to launch a smartwatch this year, codenamed 'Malibu 2', which will feature health-tracking capabilities and a built-in Meta AI assistant, aiming to compete directly with the Apple Watch and enhance its competitiveness in the wearables market.
- Intensifying Market Competition: Reports indicate that Apple is also developing a pair of smart glasses to encroach on Meta's market share, highlighting the intensifying competition in the wearables sector, which necessitates Meta's accelerated product launch to maintain its market position.
- Project Restart Context: Meta had previously planned a smartwatch five years ago but shelved the project due to cost cuts in its Reality Labs division; this restart indicates a renewed focus on the wearables market, potentially opening new revenue streams for the company.
- Product Release Timing: The new smartwatch is expected to be released ahead of Meta's mixed reality glasses, which have been delayed until 2027, a strategy aimed at avoiding customer confusion and optimizing the product release schedule.
See More
Meta Revives Smartwatch Project, Plans 2026 Launch
- Smartwatch Revival: Meta Platforms is set to launch its smartwatch 'Malibu 2' in 2026, featuring health tracking and an integrated Meta AI assistant, marking a significant return to AI-powered wearables in the health and fitness sector.
- AR Glasses Development: The company is developing approximately four augmented reality (AR) and mixed reality (MR) glasses, with the launch of its 'Phoenix' glasses delayed until 2027 to avoid overwhelming consumers with too many device releases at once.
- Market Demand and Supply Chain: In January, Meta announced a delay in the international launch of its latest AI-powered Ray-Ban smart glasses due to U.S. demand outpacing supply, prioritizing domestic orders before considering international expansion, demonstrating the company's responsiveness to market dynamics.
- Stock Performance: Year-to-date, Meta's stock has declined by 1.11%, but it rose by 0.61% on Wednesday to close at $643.22, reflecting market confidence in its future product offerings.
See More
Valuation Challenges Intensify for Tech Stocks
- Tech Stock Sell-off: A wave of selling in technology shares is occurring as investors express uncertainty about their future value, particularly as price-to-earnings ratios shrink dramatically, which negatively impacts overall investment sentiment.
- Danaher-Masimo Acquisition Risks: Danaher is acquiring Masimo at nearly 25 times next year's earnings, despite the latter's inability to justify its multiple over the years, raising concerns that could adversely affect Danaher's stock performance.
- CrowdStrike-Microsoft Partnership: CrowdStrike's Falcon platform is now available on the Microsoft Marketplace, which could significantly boost revenue; however, its current P/E ratio of 85 has led to a tepid market reaction, reflecting investor anxiety over high valuations.
- ServiceNow Management Confidence Issues: Despite ServiceNow's announcement of a $5 billion stock buyback and intentions from executives to buy shares, the stock price still fell, indicating market skepticism about its growth prospects amid intensifying AI competition.
See More
U.S. Develops Online Portal to Bypass Censorship
- Portal Development: The U.S. State Department is developing an online portal named “freedom.gov” aimed at providing access to content banned by European and other governments, intending to bypass censorship and enhance the flow of information.
- Content Scope: The portal will include purported hate speech and terrorist propaganda, reflecting the U.S. stance on global information freedom while potentially sparking international controversy and debate.
- Technical Measures Exploration: Officials are considering adding a VPN feature to the site to make users' traffic appear as if it originated from the U.S., thereby protecting user privacy and avoiding monitoring, indicating a focus on user security.
- Announcement Delay: The project was scheduled for announcement at last week's Munich Security Conference but was postponed for undisclosed reasons, with some State Department officials expressing concerns about the plan, which may impact its progress and implementation.
See More
Zuckerberg Discusses Social Media Safety with Cook Amid Trial
- Executive Conversations: Meta CEO Mark Zuckerberg disclosed during a high-profile trial in Los Angeles that he discussed the safety of young social media users with Apple CEO Tim Cook, highlighting the industry's growing focus on youth protection.
- Legal Strategy: Zuckerberg's disclosure is likely part of a broader legal strategy aimed at showcasing his proactive efforts to protect young Instagram users, including consultations with a rival company, reflecting Meta's commitment to social media safety.
- Trial Focus: During the trial, Zuckerberg faced scrutiny over beauty filters, which studies suggest harm teenage girls; he stated that Meta prioritized free expression, ultimately lifting a temporary ban on cosmetic surgery filters.
- Global Regulation: Australia became the first country to ban children under 16 from major social platforms, immediately blocking millions of young users, indicating a growing global concern over teen social media usage.
See More
Meta to Invest $65M in Politicians Favoring AI Industry
- Investment Scale: Meta is set to invest $65 million in 2023 to support state politicians favorable to the artificial intelligence industry, marking its largest election investment to date and indicating a growing emphasis on political engagement.
- New Super PACs Established: The company is quietly launching two new super PACs, one backing Republicans and the other supporting Democrats, aiming to leverage political influence to counter regulatory threats to the AI sector.
- Funding Flow and Utilization: Last year, Meta allocated $45 million to the American Technology Excellence Project, with expectations that these funds will flow into the newly established PACs, thereby enhancing the company's political clout.
- Initial Spending Plans: Meta's expenditures are set to commence this week in Illinois and Texas, primarily backing incumbent Democratic and Republican candidates, reflecting the company's strategic inclination to maintain the existing political landscape.
See More
Meta Plans to Launch New Smartwatch This Year
- New Product Launch: Meta is planning to launch a smartwatch this year, codenamed 'Malibu 2', which will feature health-tracking capabilities and a built-in Meta AI assistant, aiming to compete directly with the Apple Watch and enhance its competitiveness in the wearables market.
- Intensifying Market Competition: Reports indicate that Apple is also developing a pair of smart glasses to encroach on Meta's market share, highlighting the intensifying competition in the wearables sector, which necessitates Meta's accelerated product launch to maintain its market position.
- Project Restart Context: Meta had previously planned a smartwatch five years ago but shelved the project due to cost cuts in its Reality Labs division; this restart indicates a renewed focus on the wearables market, potentially opening new revenue streams for the company.
- Product Release Timing: The new smartwatch is expected to be released ahead of Meta's mixed reality glasses, which have been delayed until 2027, a strategy aimed at avoiding customer confusion and optimizing the product release schedule.
See More
Meta Revives Smartwatch Project, Plans 2026 Launch
- Smartwatch Revival: Meta Platforms is set to launch its smartwatch 'Malibu 2' in 2026, featuring health tracking and an integrated Meta AI assistant, marking a significant return to AI-powered wearables in the health and fitness sector.
- AR Glasses Development: The company is developing approximately four augmented reality (AR) and mixed reality (MR) glasses, with the launch of its 'Phoenix' glasses delayed until 2027 to avoid overwhelming consumers with too many device releases at once.
- Market Demand and Supply Chain: In January, Meta announced a delay in the international launch of its latest AI-powered Ray-Ban smart glasses due to U.S. demand outpacing supply, prioritizing domestic orders before considering international expansion, demonstrating the company's responsiveness to market dynamics.
- Stock Performance: Year-to-date, Meta's stock has declined by 1.11%, but it rose by 0.61% on Wednesday to close at $643.22, reflecting market confidence in its future product offerings.
See More
Valuation Challenges Intensify for Tech Stocks
- Tech Stock Sell-off: A wave of selling in technology shares is occurring as investors express uncertainty about their future value, particularly as price-to-earnings ratios shrink dramatically, which negatively impacts overall investment sentiment.
- Danaher-Masimo Acquisition Risks: Danaher is acquiring Masimo at nearly 25 times next year's earnings, despite the latter's inability to justify its multiple over the years, raising concerns that could adversely affect Danaher's stock performance.
- CrowdStrike-Microsoft Partnership: CrowdStrike's Falcon platform is now available on the Microsoft Marketplace, which could significantly boost revenue; however, its current P/E ratio of 85 has led to a tepid market reaction, reflecting investor anxiety over high valuations.
- ServiceNow Management Confidence Issues: Despite ServiceNow's announcement of a $5 billion stock buyback and intentions from executives to buy shares, the stock price still fell, indicating market skepticism about its growth prospects amid intensifying AI competition.
See More
U.S. Develops Online Portal to Bypass Censorship
- Portal Development: The U.S. State Department is developing an online portal named “freedom.gov” aimed at providing access to content banned by European and other governments, intending to bypass censorship and enhance the flow of information.
- Content Scope: The portal will include purported hate speech and terrorist propaganda, reflecting the U.S. stance on global information freedom while potentially sparking international controversy and debate.
- Technical Measures Exploration: Officials are considering adding a VPN feature to the site to make users' traffic appear as if it originated from the U.S., thereby protecting user privacy and avoiding monitoring, indicating a focus on user security.
- Announcement Delay: The project was scheduled for announcement at last week's Munich Security Conference but was postponed for undisclosed reasons, with some State Department officials expressing concerns about the plan, which may impact its progress and implementation.
See More
Zuckerberg Discusses Social Media Safety with Cook Amid Trial
- Executive Conversations: Meta CEO Mark Zuckerberg disclosed during a high-profile trial in Los Angeles that he discussed the safety of young social media users with Apple CEO Tim Cook, highlighting the industry's growing focus on youth protection.
- Legal Strategy: Zuckerberg's disclosure is likely part of a broader legal strategy aimed at showcasing his proactive efforts to protect young Instagram users, including consultations with a rival company, reflecting Meta's commitment to social media safety.
- Trial Focus: During the trial, Zuckerberg faced scrutiny over beauty filters, which studies suggest harm teenage girls; he stated that Meta prioritized free expression, ultimately lifting a temporary ban on cosmetic surgery filters.
- Global Regulation: Australia became the first country to ban children under 16 from major social platforms, immediately blocking millions of young users, indicating a growing global concern over teen social media usage.
See More
