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Topic: OT - Money / Investing Thread (aka financial no stupid questions)

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MikeDeTiger

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As to the purely hypothetical aspect of the question:

I'm no stock expert, and I don't keep up with a lot of info that could affect that.  That said, I'd be worried about California's recent ruling that found META liable for creating an addictive platform.  I'm not convinced that ordeal is over with.  My concern would be that it's just the first drips in a dam that's gonna break, potentially.  N

Might be absolutely nothing.  But it might be something.  

Also, I just pulled up a 10-yr chart on META and slapped a trend line on it.  Going off of nothing more than price-action mechanics, I'm not sure it's done falling off it's 2025 highs.  However, I don't know if principles that I have confidence in for shorter-term trades generalize well to long-term stuff.  I don't have any experience in that.  

Did I mention I'm no stock expert?

Cincydawg

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SFBadger96

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Meta had plenty of employees who believed that its products were addicting youth, and at its senior executive level, Meta presentations called for increasing youth engagement because youth had the lowest levels of later leaving the platform (suggesting--according to the plaintiffs--that Meta's executives knew youth users were more likely to become addicted to its use). Meta's employees and executives also appeared aware that several of the features on the site, including, for instance, photo filters, had a negative impact on many youth's body image issues, resulting in sometimes severe mental health impacts. Similarly, Meta's employees and executives appeared aware that the comment feature on its apps often led to bullying. Finally, in the New Mexico case (and perhaps others), the New Mexico AG convinced a jury that Meta's algorithms often resulted in targeting vulnerable youth for sex trafficking. These weren't merely theories plaintiffs argued; the evidence, including internal communications and the use of test accounts, was pretty damning.

Meta was likely very wise to settle these cases (the New Mexico case is separate). It had legitimate legal issues to argue on appeal, but that would only have come after a trial where Meta clearly thought it had a good chance of losing and getting hit with a big verdict.  

bayareabadger

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I was holding onto some stock from my company to avoid short term capital gains taxes. But I’m realizing it’ll need a big jump to actually have gains, so we might be selling off soon.

MikeDeTiger

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Meta was likely very wise to settle these cases (the New Mexico case is separate). It had legitimate legal issues to argue on appeal, but that would only have come after a trial where Meta clearly thought it had a good chance of losing and getting hit with a big verdict. 


Since this is not my area at all, do those settlements spell the end of the matter, or is it possible more plaintiffs could allege similar things and more settlements or lawsuits could be pending?  I don't really know, from a legal standpoint, what could potentially be in the works there, and it affects my risk-assessment for the stock.

 

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