Top 5 Stocks to Buy According to Whale Rock Capital Management

3. Meta Platforms Inc. (NASDAQ:META)

Whale Rock’s Stake Value: $293,256,102

Stock Upside: 45.34%

Number of Hedge Fund Holders: 262

Meta Platforms Inc. (NASDAQ:META) is one of the top stocks to buy according to Whale Rock Capital Management. On June 30, Reuters reported that a federal judge in Oakland, California, rejected Meta Platforms Inc.’s (NASDAQ:META) attempt to dismiss a lawsuit filed by dozens of US state attorneys general, who accuse the company of intentionally designing Facebook and Instagram to be addictive to children while hiding the resulting harm from the public.

US District Judge Yvonne Gonzalez Rogers issued the ruling late on Monday (June 29) night, said Reuters. It added that the judge denied Meta’s motion to dismiss claims tied to deception, unfair business practices, and violations of the federal Children’s Online Privacy Protection Act (COPPA). COPPA requires companies to get parental consent before collecting data from children under 13.

On the COPPA issue specifically, the judge found that it was undisputed that Meta failed to properly notify parents or obtain their consent as the law requires. The 38-page ruling stated that there remain real factual disagreements that a jury needs to resolve, including whether Meta’s platforms are actually addictive, whether the company falsely denied designing them that way, and whether it partly targeted children with these features, Reuters noted.

Reuters added that the judge pointed to internal Meta statements claiming its platforms were not built to cause compulsive use among teens. The judge said a jury could reasonably conclude those statements were misleading if evidence shows the platforms were in fact engineered that way.

This decision means the case will move forward toward trial. As such, both parties will get the chance to present evidence and expert testimony on how Facebook and Instagram’s design affects young users.

Meta Platforms, Inc. (NASDAQ:META) is a technology company. It develops products that enable people to connect and share through mobile devices, personal computers, virtual reality headsets, and wearables. The company operates through the Family of Apps and Reality Labs segments.