Meta faces trial in October on unfair competition case lodged by Spanish media
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 29 2024
0mins
Should l Buy META?
Source: Reuters
Meta Platforms Faces Legal Action: Meta Platforms will go to trial in October 2025 in Spain over a €551 million complaint from over 80 media companies, alleging unfair competition due to the misuse of personal data for targeted advertising.
Legacy Media's Fight Against Tech Giants: The lawsuits reflect legacy media's efforts to combat tech giants like Meta, demanding fair compensation for content usage, amidst concerns that similar actions have led to negative outcomes in other countries.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 661.460
Low
655.15
Averages
824.71
High
1117
Current: 661.460
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Plans: The company expects capital expenditures to range from $115 billion to $135 billion in 2026, representing a staggering 73% year-over-year growth compared to $72.2 billion in 2025, reflecting strong confidence in future growth opportunities.
- Core Business Optimization: CFO Susan Li emphasized that Meta will prioritize investments to enhance its core business, particularly in AI-driven ad recommendations, which not only unlocks additional value from existing products but also sets the stage for an exciting new product cycle.
- Profitability Resilience: Despite a 40% year-over-year surge in costs and expenses, Meta managed to achieve an 11% growth in earnings per share, demonstrating resilience during its investment cycle, while management's Q1 revenue guidance suggests a growth of 26% to 34%, further boosting market confidence.
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- MrBeast Enters Finance: YouTuber Jimmy Donaldson, known as MrBeast, announced the acquisition of the financial services app Step, marking his expansion into fintech, which could attract younger users and enhance his brand influence.
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- Alphabet's AI Investment: Alphabet plans to raise $20 billion through a U.S. dollar bond sale to fund its AI infrastructure, while acknowledging for the first time that increased consumer use of generative AI could disrupt its core advertising business, highlighting a landscape of both risks and opportunities.
- Target Resource Shift: Target stated in an internal memo that it will increase store staffing while cutting around 500 jobs at distribution centers and regional offices to enhance customer shopping experiences, reflecting the new CEO's commitment to improving customer satisfaction.
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- Court Ruling: A German court has ruled that Meta's subsidiary Edge Network Services must pay Deutsche Telekom approximately €30 million ($35.71 million), which the telecom firm claims is owed for network services provided, highlighting the court's emphasis on telecom service contracts.
- Contractual Context: Deutsche Telekom asserts that Meta failed to pay for network services utilized on its platforms, and this ruling not only impacts Meta's financial standing but may also affect its future operations in Germany.
- Industry Implications: This ruling could prompt other tech companies to reassess their contractual relationships with telecom operators to ensure compliance with legal obligations when utilizing network services, thereby avoiding similar financial disputes.
- Market Reaction: Meta may need to adjust its financial strategies to accommodate this unexpected expense, especially in the current economic climate where any additional financial burden could impact its stock price and investor confidence.
See More
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- Court Support for Appeal: WhatsApp's appeal against the €225 million fine imposed by the Data Protection Commission (DPC) received backing from the European Court of Justice, which affirmed the company's right to challenge the European Data Protection Board (EDPB) decision, highlighting the importance of protecting corporate rights.
- Fine Background: The DPC initially fined WhatsApp in 2021 due to complaints regarding its use of personal data, with the penalty later increased following EDPB intervention, reflecting stringent regulatory scrutiny on data compliance among large tech firms.
- Impact of Legal Challenges: Despite the DPC imposing over €4 billion in fines on major tech companies since 2020, only €17.5 million has been collected due to extensive legal challenges, underscoring the significant impact of legal processes on fine enforcement.
- Future Legal Clarity: The progress of this case will provide legal clarity for similar cases, particularly those involving appeals related to EDPB fine calculations, potentially influencing compliance strategies and legal frameworks across the industry.
See More
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- Spotlight Feature Growth: The number of U.S. Snapchatters posting to Spotlight surged by 47% year-over-year, while reposts and shares jumped 69%, reflecting user acceptance of new features and potentially providing new revenue opportunities for future advertising growth.
- Future Strategic Initiatives: Snap plans to launch Specs AI glasses in 2026 and has received authorization for a new share buyback, demonstrating the company's commitment to maintaining financial strength while enhancing market competitiveness through innovative products.
See More
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- Justification of AI Capex: Jensen Huang stated in a CNBC interview that the AI infrastructure buildout represents the largest investment in human history, which is justified and sustainable, and is expected to drive cash flow growth for companies, thereby enhancing overall market confidence.
- Investor Skepticism: Despite Huang's optimism regarding AI chip demand, economist Jeremy Siegel highlighted that investors are skeptical about the $200 billion capital expenditure, suggesting that the market should scrutinize payback periods and competitive dynamics to assess investment feasibility.
- Amazon's Capex Plan: Amazon announced a capital expenditure plan of $200 billion for 2026, which is over a 50% increase from 2025, primarily to meet strong demand in AI, chips, and robotics, indicating the company's confidence in future growth opportunities.
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See More
