Future Fund managing partner Gary Black anticipates Meta Platforms (NASDAQ:META) stock will take a hit as opening arguments begin in a federal lawsuit against the company.
The trial, likely to last six to eight weeks, centers on whether the company misled the public about the safety and addictiveness of apps like Facebook and Instagram.
"I expect $META to continue to underperform the S&P 500 near-term as the outcome of a $1 trillion trial in Northern CA overhangs the stock," Black tweeted.
Black compares the Meta trial to "tobacco litigation" from 30 years ago.
A handful of state attorney generals argue that Meta made their apps addictive for children and teens, improperly collected user data and misled the public about safety protocols.
