Key insights
- The article discusses the potential impact of lawsuits and regulations targeting the addictive nature of social media platforms, particularly META. Concerns about scams targeting elderly users add to the legal risks. If the 'addiction' element is curtailed, the valuation of these companies could be significantly impacted. This poses a bearish risk for META and potentially other social media companies, although the timing and magnitude of the impact are uncertain.
It seems like a lot of people are social media addicts. How many more lawsuits will there be against META? It seems endless. But the rub is, if the addiction aspect of these platforms is shut down, how much are the companies worth?
Not to mention way too many elderly individuals are being hit with scams on META's platforms and they are doing little to curb it. How long before those lawsuits emerge?
https://www.npr.org/2026/03/25/nx-s1-5746125/meta-youtube-social-media-trial-verdict
The entire company model is built on addiction and they have known how it effects brains for a long time.
https://www.nytimes.com/2018/10/26/style/phones-children-silicon-valley.html