Meta’s Legal Victory Overshadowed by Internal Research Scandal

Meta Platforms finds itself at the center of conflicting narratives this weekend, celebrating a major regulatory victory while confronting damaging internal revelations. The social media giant successfully defended against a potentially catastrophic antitrust challenge, but simultaneously faces scrutiny over suppressed research concerning user wellbeing. Investors now weigh whether legal clearance will propel the stock upward or if ethical concerns will hamper its recovery.

While Meta's legal team secured a critical win, unredicted court documents from a class-action lawsuit reveal troubling internal practices. Under the codename "Project Mercury," the company allegedly concealed research findings about platform effects on mental health. Internal scientists reportedly concluded as early as 2020 that just one week away from Meta's platforms significantly reduced measurable symptoms of depression and anxiety.

The serious allegation claims Meta halted this research and buried the results to protect user engagement metrics. Though Wall Street frequently overlooks reputational damage when revenue remains strong, the deliberate suppression of evidence creates substantial financial exposure from impending litigation. The contradiction between public statements and internal knowledge could prove costly in future legal proceedings.

Breakup Threat Eliminated

In positive developments for shareholders, Meta achieved a decisive victory against the Federal Trade Commission (FTC). The regulatory threat that could have forced the divestiture of Instagram and WhatsApp has been effectively neutralized. This represents a fundamental relief for the company's valuation.

With Instagram projected to generate over half of Meta's U.S. advertising revenue by 2025, removing this existential uncertainty may trigger market reassessment of the company's worth. The "worst-case scenario" of corporate breakup no longer needs to be factored into the stock's valuation, potentially unlocking significant upside.

Should investors sell immediately? Or is it worth buying Meta?

Powering the AI Ambition

Separate from its legal battles, Meta continues making strategic operational shifts. To support the enormous infrastructure requirements of artificial intelligence development, the corporation plans direct entry into wholesale electricity markets. The initiative involves securing power from new generation facilities to meet the massive demands of upcoming data centers.

This move highlights the capital-intensive nature of the AI competition through 2026 and beyond. Meta's willingness to engage directly in energy procurement demonstrates both the scale of its AI ambitions and the comprehensive approach to supporting its technological future.

Market Implications

As trading resumes Monday, volatility appears likely while investors process these contradictory developments. From a purely financial perspective, many analysts see greater upside potential from the antitrust victory, with some price targets substantially above current levels.

Following a challenging month that saw Meta shares decline over 18% in value, the elimination of breakup concerns could provide the catalyst investors have awaited for a trend reversal. The fundamental relief on regulatory risk may outweigh ethical considerations in driving near-term price action, though the suppressed research introduces new litigation uncertainties that could pressure the stock longer-term.