Facebook could see multibillion-dollar class action suit, iOS 14.5 impacts still being felt in the sector and other notable stories from this week.
Welcome to “#SocialStocks,” The Fly’s weekly recap of Wall Street’s reactions to social media stock news.
BIG TECH BILL: Apple (AAPL) has warned that Senate Judiciary Committee is set to debate a bill that will limit the power of large tech companies, which would weaken a privacy-protection tool that the company rolled out last year, Tim Higgins of The Wall Street Journal reports. Apple has said congressional efforts to prevent it from prohibiting “sideloading,” the practice of downloading software onto phones outside of the App Store’s security, would expose users to security threats because those apps would not be vetted. Apple reiterated those claim Tuesday, but also argued the legislation would benefit “those who have been irresponsible with users’ data” and those who opposed the company’s App Tracking Transparency program, according to a letter to committee leaders the Journal reviewed. The legislation is set to limit the power of Apple as well as Amazon (AMZN), Google (GOOG;GOOGL), and Meta Platforms (MVRS), according to the Journal.
TOP GUN: JPMorgan analyst Doug Anmuth lowered the firm’s price target on Meta Platforms to $385 from $390 and maintained an Overweight rating on the shares. The company’s revenue growth will decelerate in 2022 against tough compares, but Meta is making solid progress against Apple’s iOS changes, Anmuth tells investors in a research note. Further, the analyst is encouraged that Reels can become a major advertising surface. He also believes the company has likely passed 10M active virtual reality units. The stock remains a top pick for Anmuth.
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