Rate Of Return2 days ago, 11:31 PM
$Meta Platforms(META.US)
Context: Meta has agreed to a proposed settlement of up to $17 billion that will alter how kids use Instagram and Facebook. The accord, pending a judge's approval, would resolve litigation launched by a wide coalition of state attorneys general over the impact of Meta's platforms on children and teenagers. Under the terms of the proposed arrangement, kids would be subject to default daily usage caps and nighttime bans that parents would have to turn off. Meta makes very little advertising money from teens now but young people are crucial to the future of Instagram and Facebook. The new rules could lead to reduced interaction in that cohort, and make it harder for Meta to win over younger audiences in the long run.
My Trade: This was never going to be a long term deficit. Lawsuits for social media companies are very common, so the dips were just opportunities for long run dca. I'm holding on because the share price is nowhere near the company's valuation at the moment.
Takeaway: The settlement will also entail continuing compliance costs like independent monitoring and new means of age verification.The bigger concern for investors is whether the tougher constraints will stay largely confined to under-age accounts or become a precedent for further regulation of social media sites. @Captain's Treasure
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