Earnings
Home›Earnings›Analyst Ratings›Morgan Stanley sees earnings upside for Meta after $18…
Morgan Stanley sees earnings upside for Meta after $18 billion settlement
The analyst estimates new Meta product launches could add about $10 to earnings per share over time.
Meta Platforms has agreed to pay up to $18 billion over the next decade to settle its youth social media addiction lawsuit, ending a legal case that had weighed on the company and its stock, according to MarketBeat Ratings.
After the settlement, Morgan Stanley analyst Brian Nowak said the timeline could mark an inflection point for Meta, arguing that the end of the trial may open the door to a wave of additional product releases.
Nowak’s product list includes agentic advertising tools for businesses, subscription offerings, a better version of Meta AI, and a potential cloud business, and he estimates these efforts could add $10 to Meta earnings per share over time.
Using Meta’s 2025 adjusted earnings per share of $29.68 and GAAP EPS of $23.49 as reference points, the forecast would imply roughly a 34.0% to 43.0% uplift, MarketBeat Ratings reported, while also noting Meta has accelerated model releases in recent months and begun charging users on a pay-as-you-go basis for access.