Snap shares fell 2% as jury selection began in its first trial over youth social media addiction in Los Angeles, with Meta also a defendant. Two teenagers say social media hooked them and harmed their mental health; the plaintiffs seek compensatory and punitive damages without naming an amount, while Snap says the claims misrepresent their experiences on Snapchat. Snap's free cash flow reached $705.5 million over the twelve months to June 2026, while Meta agreed to settle with 52 state attorneys general for up to $18.59 billion and posted negative $2.12 billion of third-quarter free cash flow amid heavy AI spending. Snap reports third-quarter results on Nov. 4, with revenue guidance of $1.70-$1.74 billion. The author sees court-ordered product changes as the bigger risk and considers the drop a fair reaction, since Snap has much less room than Meta to pay a large verdict.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.7T |
| Close on 10/28/2026 | 612.49 |
| Change that session | -1.24% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Meta allegedly schemed to discredit outspoken NYU professor, unsealed court documents show
Unsealed court documents in ongoing litigation appear to show Meta employees discussing how to undermine Jonathan Haidt, the social psychologist behind 'The Anxious Generation' who criticizes social media's effect on youth and is a professor at NYU's Stern School of Business. The documents, which appear to date from 2023, reference a 'Haidt assignment' aimed at getting the academic community to disavow him, and describe a covert 'whisper strategy' requiring coordination across Policy, Comms and Legal. Meta has faced lawsuits since 2022 alleging youth mental health harms, and it reached a settlement with 52 attorneys general agreeing to pay up to $18.5 billion. An SEC filing says damages sought in its youth mental health cases have at times amounted to more than a trillion dollars.
- Judge orders Meta to pay $25 bn to New Mexico in Cambridge Analytica case
A New Mexico judge ordered Meta to pay the state $25 billion on Wednesday, after a jury last month found the company deceived users in a case tied to the Cambridge Analytica scandal. The ruling comes a couple of months after Meta agreed to pay $18 billion to settle claims brought by 48 other states. Cambridge Analytica harvested data through a personality quiz app installed by about 270,000 users, reaching roughly 87 million Facebook users worldwide, and jurors found the misconduct affected all 2.1 million residents of New Mexico. Meta called the ruling “a tax on speech” that makes doing business in the state all but impossible and said it will appeal, while Attorney General Raúl Torrez hailed it as historic. Separately, New Mexico already won nearly $1 billion in penalties against Meta in a case over harms to children.
- Meta ordered to pay $25 billion in case related to Cambridge Analytica scandal
A New Mexico judge ordered Meta to pay the state $25 billion, its biggest payout yet, over its role in deceiving users about data privacy in the Cambridge Analytica scandal, following a two-week trial. The jury had found Meta committed 43 million violations of state consumer protection laws, each carrying a $5,000 penalty. The case covered a third-party app linked to the Cambridge Analytica breach, as well as Meta's data privacy policies and its efforts to mitigate misinformation. New Mexico Attorney General Raúl Torrez said the payment could pay for school construction for the next 100 years. Meta said it will appeal, calling the ruling an effort to impose a tax on speech and warning that it makes doing business in New Mexico all but impossible.
- Ticker : Florida wins ruling for kid social media use
- How Low Can Snap Stock Go?
Snap (SNAP) shares lost 10.6% over the five trading days to October 29, 2026, while the S&P 500 gained 0.8%, and the stock traded at $5.68. Since its March 2017 listing, Snap has traded through eight market shocks, falling an average of 43.4% versus 15.3% for the S&P 500; in the 2022 inflation shock it lost 83% against 24% for the index, and on October 29, 2026 it closed 87.8% below its January 3, 2022 close. Fiscal Q2 2026 results improved, with revenue up 18.9%, operating loss narrowing to 10.7% of revenue from 19.3%, and free cash flow of $121 million versus $24 million a year earlier. Management warned that U.S. trials later in 2026 and closer scrutiny of youth-related issues could bring larger legal payments, and it raised its 2026 infrastructure cost forecast to $1.65 billion–$1.70 billion; Pennsylvania's attorney general sued Snap on August 26, 2026. Fiscal Q3 2026 revenue is guided to $1.70 billion–$1.74 billion, 13% to 15% growth, with results expected on November 4, 2026.
- Meta Climbs 4% on Muse Retention Data; Snap Rises 3%, Reddit Falls 3%
Meta Platforms rose 4% to $744.72 after third-party data from Sensor Tower showed its AI agent Muse retains 73% of new users the day after install, above ChatGPT's comparable figure, though ChatGPT pulls ahead between the eighth and ninth day. Snap gained 3% to $6.45, while Reddit fell 3% to $155.23 and is down 32% so far this year, with no company announcement explaining the drop. Similarweb data put Muse daily active users at 2.182 million on October 5, but major shopping sites are increasingly blocking AI agents, limiting what Muse can complete. Meta trades at a forward P/E of 22x, below its 52-week high of $779.82. Snap reports earnings on November 4, which could increase share-price volatility.
Related markets
Latest news
- Tech gets crushed, defensive stocks shine. How we're making sense of it all
U.S. stocks fell sharply on the last trading day of October, with the S&P 500 down more than 2% and the Nasdaq down over 3.5% as the market continued to push back on AI-related tech names. Intel plunged over 30% after a disappointing outlook, and Sandisk fell 15% after underwhelming earnings. Amazon, Alphabet and Microsoft also dropped after their reports; the author sees the Amazon and Microsoft declines as less warranted, though investor appetite for capital-intensive AI spending appears to be waning. Jim Cramer said the Amazon dip is buyable and kept Amazon at a 1 rating, while Microsoft is nearing an upgrade to a buy-equivalent 1 if its slide continues and Alphabet stays at hold-equivalent 2. Healthcare stocks outperformed this week, led by Eli Lilly at a new all-time high, and the team still wants to add to its Boeing position; more than 100 S&P 500 companies report this week, October nonfarm payrolls are expected to add 72,500 jobs, and the midterms are on Tuesday.
- Apple Is Near a Record. Netflix Is Down More Than Half. I'd Buy Only 1 of Them.
Apple shares are roughly $350, near their all-time high and up about 29% so far in 2026, while Netflix trades near $62, about 54% below its June 2025 record close. Netflix looks cheaper on forward earnings, with a P/E around 17 versus about 37 for Apple based on analyst forecasts, but its revenue growth has slowed from 17.6% in Q4 2025 to 11.8% in its latest reported quarter, with guidance of 11.5% for Q4. Apple's management forecast fiscal Q4 revenue growth of just 9% to 11%, but its installed base tops 2.5 billion active devices and services made up about 42% of gross profit. The author sees most of Apple's AI payoff still ahead, through features users might pay for and new devices like HomeView, while the foldable iPhone Duo starting at $1,999 adds a pricier tier. The author judges Apple the more durable of the two despite its higher valuation, and says he would build a position gradually.
- Video - CEO Clips: Alex Metals: Searching for the Next Major Silver-Gold Discovery in Alaska
Alex Metals (TSXV: ALX) is advancing three exploration projects in Southeast Alaska, targeting high-grade silver, gold, zinc and copper. The company recently completed an exploration program of approximately $8 million, including drilling at two projects and fieldwork at a third. Led by an experienced exploration team, it aims to find deposits similar to Alaska's Greens Creek Mine.
- Googling for Reddit answers is about to get harder
Reddit will first test its new approach outside the U.S. The change could reshape how millions of people find real-world advice.
- Binance Hack: Why Bitcoin Didn't Crash Like It Did in 2018
Binance suffered a hack estimated at $6.4 billion, the largest on record and more than four times the $1.5 billion Bybit heist of February 2025, yet Bitcoin only dipped to about $76,400, roughly 6% below its post-Fed level. Unlike March 2018, when Bitcoin fell from $10,740 to $9,690 within minutes, the crypto market is now worth roughly $2.6 trillion versus just over $400 billion then, and U.S. spot Bitcoin ETFs hold roughly 1.3 million coins. Binance says it has set aside more than $6.34 billion to cover all losses, about $3 billion is frozen, and withdrawals should resume in 45 hours. The Fear and Greed index fell to 36 from 43, and more than $1.3 billion in leveraged positions were liquidated. Chainalysis and TRM Labs tie the attack to the North Korean group behind the Bybit heist.
- Why Did Rivian Stock Surge Higher on Friday?
Rivian shares jumped over 7% early Friday and were still up 1.1% as the Nasdaq Composite fell more than 3.5%. The EV maker reported a third-quarter loss, but it was $0.14 better than Wall Street expected, and revenue also beat estimates, helped by the successful ramp-up of its new R2 SUV production. Rivian raised its 2026 guidance, posting gross profit of $176 million and narrowing its operating loss by $100 million from a year earlier. The company ended the quarter with over $5.5 billion in cash and equivalents and expects R2 to reach a positive gross margin by the end of this year. CEO R.J. Scaringe told CNBC that the ramp-up is critical for R2 to reach positive gross margin, which will ultimately contribute to positive gross margin for the business.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.