META (US)

The recent social media verdicts in New Mexico and California raise the valuation question for investors about how far P/Es might fall for META (META) and (Alphabet) GOOGL assuming litigation risks continue and potentially intensifies. History’s answer is that the path isn’t linear. In different cases, it took the market time…

We had the following takeaways from last week’s conference call we hosted on the recent verdicts in the META and GOOGL trials in New Mexico and California with two lawyers who are very familiar with similar Internet cases. A transcript or audio recording of the call is available…

While this morning’s Senate Commerce Committee hearing, entitled “Liability or Deniability? Platform Power as Section 230 Turns 30,” was lively and somewhat surprisingly well attended, we seriously doubt any material erosion of Section 230 protections for social media companies such as Meta (META), Alphabet’s YouTube (GOOGL), and Reddit (RDDT) will pass…

We estimate roughly a 35% probability that Congress will enact a youth online safety legislative package, including the Kids Online Safety Act (KOSA), COPPA 2.0, and the Kids Off Social Media Act (KOSMA) or similar legislation. The combo of these measures would be negative for Snap (SNAP), Roblox (RBLX), Meta (META), and Alphabet’s…

We continue to believe that full expensing / deductibility of the R&D tax credit in the year expenses occur will be part of the massive reconciliation / tax bill we expect to see enacted in…