social media

Key developments include: stock market volatility influenced by Fed rate cut expectations and dissenting Fed opinions; Meta facing criticism for suppressing research on Facebook’s impact on mental health; Novo Nordisk’s Alzheimer’s trial failing to meet its endpoint, causing a stock decline; anticipation of record-breaking Thanksgiving travel; and the box-office success of Universal’s “Wicked: For Good”. Upcoming economic data releases and Fed commentary will be closely watched. Earnings reports from Best Buy, Dick’s, Abercrombie & Fitch, Kohl’s, Workday, Dell, and HP are also scheduled.

Meta faces renewed scrutiny over allegations that it halted internal research (“Project Mercury”) showing a potential link between reduced Facebook usage and improved mental well-being. A lawsuit accuses Meta, along with other social media companies, of prioritizing growth over user safety, particularly for young people, and knowingly exposing them to mental health harms. Meta refutes the allegations, citing flaws in the study and ongoing efforts to protect teens. The outcome of this and similar litigation could significantly impact the social media industry.

Meta Platforms won a U.S. District Court ruling against the FTC in an antitrust case. The judge found the FTC failed to prove Meta currently holds a monopoly in social networking, particularly after acquiring Instagram and WhatsApp. The court cited the rise of TikTok and YouTube as evidence of increased competition. The FTC expressed disappointment and is reviewing options. Meta’s stock experienced a slight dip following the ruling while Meta maintains that the ruling acknowledges that it faces fierce competition.

Snowflake (SNOW) filed an 8-K with the SEC after its CRO, Mike Gannon, inadvertently disclosed unauthorized financial guidance on Instagram, estimating the company would exit the year above $4.5 billion and reach $10 billion in a few years. Snowflake clarified that Gannon isn’t authorized to disclose financial information and that investors should disregard his comments. The company reaffirmed its official guidance of $4.395 billion for fiscal year 2026, minimizing potential market impact.

OpenAI’s Sora 2, an AI video generator integrated with a social feed, quickly gained popularity, surpassing ChatGPT’s initial download rate. This raises questions about its potential to challenge Meta’s social media dominance and advertising revenue. While analysts acknowledge potential investor anxiety and Meta’s stock has seen a slight decline, Meta’s large user base, history of innovation, and ongoing AI investments may mitigate the threat. Concerns remain regarding the sustainability of AI-generated content and its potential impact on user engagement and retention.

A Los Angeles judge has ruled that Meta CEO Mark Zuckerberg, along with Snap’s Evan Spiegel and Instagram’s Adam Mosseri, must testify in a trial concerning social media’s impact on young users. The trial, slated for January, will address allegations that social media companies failed to warn users about addictive features. The judge emphasized the relevance of CEO testimony regarding knowledge and prevention of potential harms. This case is part of a growing number of legal challenges questioning the industry’s ethical design principles and accountability for adverse effects on youth mental health.

California enacted legislation aimed at protecting children online, addressing concerns about AI chatbots, social media, and digitally altered content. SB 243 requires AI chatbots to disclose their AI nature and prompt minor users to take breaks. AB 56 mandates social media platforms to display mental health risk warnings, while AB 621 increases penalties for deepfake pornography. AB 1043 requires age verification tools in app stores. The laws necessitate changes in tech business models and align with a global trend toward greater AI regulation.

YouTube settled a lawsuit with Donald Trump for $24.5 million over his 2021 account suspension following the January 6th Capitol riots. The settlement, which doesn’t admit liability, follows similar payouts from Meta and X. The lawsuits, alleging censorship, sparked debate on free speech versus content moderation. Some analysts view the settlements as preemptive measures against potential regulatory scrutiny during Trump’s second term, especially given Google’s existing challenges and congressional concerns about potential quid-pro-quo arrangements. The financial burden of content moderation for tech firms is also highlighted.

Instagram has reached 3 billion monthly active users, as announced by Meta CEO Mark Zuckerberg. This marks a significant growth from the 2 billion users reported in October 2022. The platform’s success is attributed to its visual format and evolving features. In related news, Instagram has implemented new default privacy settings, setting all underage accounts to private. This reflects growing concerns about online safety for younger users.

A vehicle displaying a “ghost face” mask sparked a police investigation in Hebei, China, to determine if it violated traffic laws. This follows a similar incident in Hangzhou where people wore masks to scare drivers. Authorities are concerned about distractions on the road, prompting legal consideration of objects obstructing driver visibility. The incident, documented via social media, highlights the tension between harmless pranks, public safety, and the legal ramifications of disruptive behavior, raising broader questions about road safety and public conduct.