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Aug 26 at 03:36 PM
$Meta Platforms(META.US) is up 3% (Nasdaq is down 0.1%) on the news of the national tech addiction settlement which underscores investors value clarity, even if the news is bad. The company will pay $18B over the next 10 years. Last week, I had estimated the number would be below $25B, so these penalties are in line with expectations.
The settlement has echoes of the Big Tobacco settlements in 1998 on two levels. First, social media is addictive and can be damaging. Second, the penalties will be chump change to the providers in the end. For example, the annual $1.8B in penalties compares to what will likely be $40-60B in annual FCF in 2029.Source: Gene Munster
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