META is facing ongoing lawsuits regarding platform addiction and failing to curb scams targeting the elderly. If legal or regulatory pressures force META to alter its algorithms to reduce addiction, user engagement and ad revenue will plummet, destroying the current valuation. Short or avoid META due to existential legal risks to its core engagement-driven business model. Lawsuits are dismissed, fines are a slap on the wrist, or META successfully monetizes lower-engagement users.
META is facing ongoing lawsuits regarding platform addiction and failing to curb scams targeting the elderly. If legal or regulatory pressures force META to alter its algorithms to reduce addiction, user engagement and ad revenue will plummet, destroying the current valuation. Short or avoid META due to existential legal risks to its core engagement-driven business model. Lawsuits are dismissed, fines are a slap on the wrist, or META successfully monetizes lower-engagement users.