Meta's stock rises after child-safety settlement - and looks poised to head even higher from here

By William Gavin and Christine Ji

The company's agreement with state officials removes a cloud that was hanging over the stock, an analyst says

A lawsuit accused Meta, which is led by CEO Mark Zuckerberg, of designing Facebook and Instagram in ways that would "entice" younger users.

Shares of Meta Platforms have seen choppy trading on Wednesday as Wall Street assesses the implications of the company's settlement in a closely watched legal battle over child safety.

The settlement came during the second week of a California federal trial over claims brought by a coalition of states that accused Meta (META) of designing Facebook and Instagram to "entice, engage and ultimately ensnare" children. Meta was also accused of misleading the public over the safety of its platforms and improperly collecting the personal data of children who used its services.