Meta Platforms, Inc. (NASDAQ: META ) has lived up to its name as part of the Magnificent Seven. The company has appreciated by around 38% this year, driven by growth and capital expenditure investments. Given its sizeDear Reader,I am Senior Derivatives Expert with over 10 years of experience in the field of Asset Management, specializing in equity analysis and research, macroeconomics and risk-managed portfolio construction. My professional background covers both institutional and private client asset manag ...

Core Viewpoint - A shareholder class action lawsuit has been filed against Snap Inc. alleging that the company made materially false and misleading statements regarding its advertising revenue growth rate [1]. Group 1 - The lawsuit claims that Snap failed to disclose material adverse information about its advertising revenue growth [1]. - The class action pertains to shareholders who purchased Snap shares between April 29, 2025, and August 5, 2025, and experienced significant losses [2]. - The deadline for shareholders to request to be appointed as lead plaintiff in the case is October 20, 2025 [3]. Group 2 - Holzer & Holzer, LLC is the law firm representing the shareholders, known for its strong track record in securities litigation [3]. - The firm has been recognized as an ISS top-rated securities litigation law firm for the years 2021, 2022, and 2023 [3]. - Holzer & Holzer has a history of recovering hundreds of millions of dollars for shareholders affected by corporate misconduct since its founding in 2000 [3].

Group 1 - TikTok plans to lay off hundreds of employees in London involved in content moderation and safety, coinciding with the full implementation of the UK's Cyber Security Law [1][2] - The layoffs are part of a global restructuring aimed at automating content moderation through AI, with a focus on consolidating operations in specific regions [1][3] - The Communication Workers Union (CWU) estimates that around 300 employees in TikTok's London trust and safety department will be affected by the layoffs [1] Group 2 - The UK's Cyber Security Law requires companies to verify the age of users attempting to access potentially harmful content, prompting TikTok to introduce new age verification controls [2] - TikTok is shifting its local moderation teams to regional hubs in locations like Dublin and Lisbon, as part of its global restructuring strategy [3] - TikTok's revenue in the UK and Europe is experiencing significant growth, with a 38% year-on-year increase projected for 2024, reaching $6.3 billion, while pre-tax losses have narrowed from $1.4 billion in 2023 to $485 million [3]

Core Viewpoint - The Snap Inc. class action lawsuit alleges that the company and its executives misled investors regarding advertising revenue and growth expectations, leading to significant financial losses when the truth was revealed [3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Abdul-Hameed v. Snap Inc., and it involves purchasers of Snap securities from April 29, 2025, to August 5, 2025, with a deadline of October 20, 2025, for lead plaintiff applications [1]. - The lawsuit claims that Snap's executives created a false impression of reliable advertising revenue information while downplaying macroeconomic instability [3]. - On August 5, 2025, Snap reported disappointing second-quarter results, revealing a significant deceleration in advertising revenue, which caused Snap's stock price to drop over 17% [4]. Group 2: Legal Process and Firm Background - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Snap securities during the class period to seek lead plaintiff status, which involves directing the lawsuit on behalf of all class members [5]. - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud litigation, having recovered over $2.5 billion for investors in 2024 alone, and is recognized for securing substantial monetary relief for investors [6].

Group 1: AI Market Overview - Artificial intelligence (AI) is a significant growth driver for technology stocks, with companies offering AI hardware and software solutions experiencing healthy business growth and valuations [2] - Finding attractively valued AI stocks is challenging due to the high valuations of tech stocks driven by AI [2] Group 2: Meta Platforms - Meta Platforms utilizes AI to enhance user engagement and provides advertisers with various AI tools, leading to improved monetization and growth in the company's bottom line [5][10] - With a daily active user base of nearly 3.5 billion, Meta's AI recommendation tools encourage users to spend more time on the platform, enhancing ad performance [7] - Meta reported a 5% increase in AI-related ad conversions on Instagram and a 3% improvement on Facebook, with a 9% year-over-year increase in the average price per ad [8][9] - For every dollar spent by advertisers using Meta's AI tools, they receive a return of $4.52, positioning Meta to capture a larger share of the digital advertising market, which is expected to grow at an annual rate of 15% through 2030 [10] - Meta's current trading at 28 times earnings is a discount compared to the Nasdaq-100 index's earnings multiple of 33.6, making it an attractive investment opportunity [11] Group 3: DigitalOcean - DigitalOcean is a cloud computing services provider benefiting from the growing adoption of AI, targeting early-stage technology companies and developers [12] - The company offers a full-stack AI-focused solution by renting out GPUs for AI model training and inference, positioning itself in a rapidly growing market [13] - The cloud AI market is projected to grow over 7 times between 2025 and 2030, generating over $647 billion in annual revenue by the end of the decade [14] - DigitalOcean's second-quarter results showed healthy revenue and earnings growth, with an updated earnings per share forecast for 2025 indicating an 8% potential increase from the previous year [15][16] - The company reported a 17 times year-over-year increase in remaining performance obligations (RPO) to $53 million, indicating strong revenue visibility and a shift towards commitment-based agreements [17] - DigitalOcean trades at 15.7 times forward earnings, suggesting significant upside potential as its growth accelerates [18]

In early May, I upgraded Meta Platforms, Inc. (NASDAQ: META ) (TSX: META:CA ) to a buy rating on the basis of impressive integration of AI and robust Q1 results. Since then, the stock has gained around 16% and Mark Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is ...

Group 1: Key Moves by David Tepper - David Tepper's Appaloosa hedge fund has made significant investments in artificial intelligence (AI) stocks, with Nvidia being a major focus, increasing its stake by over 483% in Q2 2025 [3][7] - Tepper sold approximately 2.16 million shares of Alibaba, reducing his stake by 23.4%, but it remains his largest holding [4] - The hedge fund also reduced its position in Meta Platforms by 27.3%, making it the sixth largest holding in the portfolio [4] - Tepper decreased his stake in Alphabet by roughly 25.4%, keeping it among the top 10 holdings at No. 8 [5] Group 2: Rationale Behind Investment Decisions - The increase in Nvidia's position is likely due to its dominance in the AI chip market and strong demand for its Blackwell GPUs, with expectations of continued robust growth [7] - The sale of Alibaba may stem from concerns about limited growth potential and the impact of tariffs on its e-commerce and cloud services [8] - Tepper's reduction in Meta's position could be influenced by its valuation, as its forward price-to-earnings ratio is 29, which is lower than Nvidia's but may not indicate comparable growth [9] - The rationale for selling Alphabet is less clear, as its shares are reasonably priced at around 21 times forward earnings, but concerns about antitrust issues and competition from generative AI may have influenced this decision [10] Group 3: Alternative Perspectives on Investments - Some analysts believe Alibaba's valuation is attractive, trading at only 14 times forward earnings, and predict growth in its cloud unit [11] - Meta's AI strategy is showing positive results, with increased user engagement and ad conversion rates, alongside potential opportunities in the AI glasses market [12] - Alphabet is viewed as an attractively valued AI leader, with a booming Google Cloud business and potential growth from initiatives like Waymo in the robotaxi market [13]

Core Viewpoint - The Snap Inc. class action lawsuit alleges that the company and its executives misled investors regarding advertising revenue and growth expectations, leading to significant financial losses for shareholders during the specified class period [3][4]. Group 1: Lawsuit Details - The class action lawsuit is titled Abdul-Hameed v. Snap Inc., No. 25-cv-07844 (C.D. Cal.), and it involves purchasers or acquirers of Snap securities from April 29, 2025, to August 5, 2025 [1]. - Investors have until October 20, 2025, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit claims that Snap's executives created a false impression of reliable information regarding advertising revenue while downplaying macroeconomic instability [3]. Group 2: Financial Impact - On August 5, 2025, Snap reported disappointing second-quarter results, revealing a significant deceleration in advertising revenue, which was partly attributed to a change that caused campaigns to clear auctions at reduced prices [4]. - Following the release of these results, Snap's stock price fell by more than 17% [4]. Group 3: Legal Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Snap securities during the class period to seek appointment as lead plaintiff [5]. - The lead plaintiff represents the interests of all class members and can select a law firm of their choice for litigation [5]. Group 4: Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [6]. - The firm has been ranked 1 in securing monetary relief for investors in securities class action cases for four out of the last five years [6].

Core Viewpoint - A class action lawsuit has been filed against Snap, Inc. due to misleading statements regarding its advertising revenue growth, which significantly declined from 9% to 1% in April 2025, leading to a substantial drop in stock price [3][4]. Group 1: Lawsuit Details - The class action lawsuit, Omar Abdul-Hameed v. Snap, Inc., was initiated in the United States District Court for the Central District of California for individuals who purchased Snap securities between April 29, 2025, and August 5, 2025 [1]. - Investors are notified that they can request to be appointed as lead plaintiff by October 20, 2025, although participation in any recovery does not require this role [5]. Group 2: Financial Performance - Snap's financial results for Q2 2025 revealed a deceleration in advertising revenue growth, attributed to issues with its ad platform, the timing of Ramadan, and minor changes [4]. - Following the announcement of these results, Snap's stock price fell from $9.39 per share on August 5, 2025, to $7.78 per share on August 6, 2025, marking a decline of approximately 17.15% in one day [4]. Group 3: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the United States [6].

I last rated Meta Platforms (NASDAQ: META ) as a buy on July 7. That analysis was entitled "Meta Platforms: Still My Top GARP Pick At Near-Record Prices (Technical Analysis)”. The As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only to beat S&P 500 but also avoid heavy drawdowns ...