Meta Says It Will Pay Up to $18 Billion Over Social Media Claims

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF.

Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu

-Matthew Schettenhelm, Bloomberg Intelligence Media Litigation Analyst, discusses breaking news on Meta. Meta Platforms Inc. agreed to pay up to $18 billion in landmark settlements to resolve allegations that the company deliberately designed Facebook and Instagram to encourage compulsive use among young users. The agreement requires Meta to put new guardrails on its platforms, including restricting how much time youths can scroll and preventing them from switching off certain safety settings without parental consent. The settlement includes payments to resolve a variety of claims across multiple lawsuits, with some payments contingent upon other social media companies adopting similar platform changes and making their own payouts.

-Mary Ross Gilbert, Bloomberg Intelligence, Senior Equity Analyst, Covering Retail, discusses earnings from Kohl’s and Abercrombie & Fitch. Kohl’s turnaround attempt showed some progress after the retailer raised its annual earnings outlook, but it still doesn’t see sales growth this year. Abercrombie & Fitch namesake brand is expected to post net sales growth of 4.7% in the second quarter, a reversal from a 5.3% decline in the same period a year earlier.

-Lindsay Dutch, Bloomberg Intelligence Consumer Hardlines Senior Analyst, discusses earnings from Bath & Body Works and Williams-Sonoma. Bath & Body Works shares fell after the company forecast year-over-year net sales declines for the third quarter. Williams-Sonoma shares drop as much as 5.7%, the most intraday since February 23, even after the home furnishing retailer reported a beat-and-raise quarter. 

-- Diana Rosero Pena, Bloomberg Intelligence Consumer Staples Analyst, discusses earnings from J M Smucker. JM Smucker Co. raised its full-year outlook for sales and profit, bolstered by growth in its Uncrustables sandwiches and coffee brands. Smucker is riding the growth of its hit products to offset broader weakness in the packaged-food segment as consumers become increasingly selective in their spending.

See omnystudio.com/listener for privacy information.