What investors should do with Meta now that the child privacy case has settled

Meta Platforms reached a $17 billion settlement with a consortium of states in a child privacy and social media addiction case that has weighed on the stock since 2023. The penalty is significant, but far smaller than the roughly $200 billion sought by attorneys general and the more than $1 trillion Meta’s lawyers argued it could face. Analysts and investors framed the agreement as a major de-risking moment. Jefferies’ Brent Thill called it a “big clearing event,” and Meta shares rose about 1.5% late Wednesday, trading above $578. The settlement also includes algorithmic changes and structural limits, such as usage capped at two hours per day and nighttime blocks from 12am–6am. Still, analysts warned it does not cover individual mental health claims.