Truist Securities lowered Meta Platforms Inc.'s stock price target to $763 from $770 while maintaining a Buy rating, citing the company's $18 billion settlement with 52 U.S. state attorneys general over alleged failures to protect teenage users.
Meta's shares traded at $576.14 at the time of the report, below Truist's revised target. The settlement addresses claims that Facebook and Instagram contributed to social media addiction among minors. Truist noted the agreement does not materially impact user engagement or revenue, as teens account for less than 1% of Meta's revenue and currently spend about one hour per day on Instagram, below the newly capped limit of two hours daily.
The $18 billion penalty spans a decade, with $11.66 billion in guaranteed payments and up to $5.02 billion in contingent amounts. An additional $5.3 billion payment hinges on TikTok and YouTube adopting similar safeguards and matching Meta's remaining obligation.
Other analysts maintained their ratings: BMO Capital reiterated a Market Perform rating with a $580 target, Evercore ISI kept an Outperform rating at $860, and BofA Securities affirmed a Buy rating with a $810 target. Truist described the settlement as a step toward resolving regulatory uncertainty, potentially benefiting the stock incrementally.
Separately, Meta introduced enhanced security features for WhatsApp, including a full password system for its two-step verification process. The European Commission is also investigating Meta over alleged violations of the Digital Services Act related to addictive design features on Facebook and Instagram.
