States are taking aim at Meta Platforms (NASDAQ:META), the parent company of Facebook and Instagram, and it’s not for the reason you might think. No, it has nothing to do with antitrust measures this time but rather over the social media platforms’ harm to children. Over 40 different attorneys general are on the bandwagon, rolling right into One Hacker Way to take on Meta, and that’s sending shares fractionally lower in Tuesday afternoon’s trading.
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Essentially, the coalition of attorneys general alleges that Meta Platforms “misled” the public about the dangers of the platforms toward the youth of today. Moreover, the coalition insists that Meta marketed its platforms to those under the age of 13, which is forbidden by federal law and by Meta’s own policies.
As for the remedy being sought, the attorneys general in question want Meta to change its product features to specifically say that they are dangerous to young users. Trying to prove such a thing, however, should be interesting, to say the least.
Meanwhile, a new report from Aristotle Atlantic Partners recently tackled the issue of whether or not Meta is in any position to address the growing digital advertising market. Aristotle sees Meta as “…well-positioned to capture a significant share of the rapidly-growing digital advertising market….” Further, Aristotle notes that Meta has “…created an interconnected ecosystem of apps that drive higher user engagements.”
Is Meta Platforms a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 41 Buy and two Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $377.08 per share implies 20.6% upside potential.
