Meta Platforms Faces $375 Million Verdict in New Mexico Child Safety Case
Meta Platforms (META) was ordered to pay $375 million after a New Mexico jury found the company violated the state’s child exploitation laws. The lawsuit, filed by the state’s attorney general, alleged Meta misled users about the safety of its platforms, including Facebook and Instagram, and failed to protect minors from predators. A Meta spokesperson stated, “We respectfully disagree with the verdict and will appeal.”
The financial impact appears limited relative to Meta’s scale. For context, the company reported a fourth-quarter profit exceeding $22 billion on revenue of nearly $60 billion. The awarded damages represent roughly 0.625% of that quarterly revenue. Shares of Meta saw little movement after the bell. The company also faces a separate lawsuit in Los Angeles alongside Google’s YouTube, accusing both of misleading users about app safety and design. Full details are available from CNBC’s Jonathan Vanian.
Market Moves: Small Caps and Gasoline Lead the Story
After a recent rally, U.S. markets took a breather. The Russell 2000 small-cap index, a key indicator for domestic economic health, has been volatile. It rose 2.75% over two days but remains down 8% from its high two months ago. Since the start of the conflict with Iran, the index has declined 4.8%. Analysts will watch this segment closely on Wednesday for signs of broader market sentiment.
Gasoline Prices Surge Ahead of Seasonal Demand
Gasoline futures (RBOB) have surged 51.5% since the war began on February 28. On Tuesday alone, RBOB—the refined unleaded gasoline blendstock before ethanol is added—jumped nearly 6%. Year-to-date, the commodity is up 85%. This directly impacts the United States Gasoline Fund (UGA), an ETF that tracks RBOB prices relatively closely. The rally reflects supply chain concerns and anticipated summer driving demand.
International Markets React Divergently to Geopolitical Tensions
The “Stocks @ Night” team notes that nearly every major U.S. and international index is down since the conflict began, with Israel’s TA-35 index a notable exception, up over 3%. The Amplify Bluestar Israel Technology ETF (ITEQ) has gained 6% in the same period. Top performers within the ETF include Tower Semiconductor, SolarEdge, Lemonade, and Wix, all up more than 25% in March. One market theory suggests that a significant loss for Iran could improve Israel’s investment climate and foster regional peace deals.
Conversely, several international ETFs have struggled. The iShares MSCI South Korea ETF (EWY) and VanEck Indonesia Index ETF (IDX) are both down about 15% in March. The iShares MSCI Germany ETF (EWG) and iShares MSCI France ETF (EWQ) have fallen 12% and 11%, respectively, since the war started.
Earnings Watch: Generac, Chewy, and Winnebago
Generac (GNRC): The generator maker, up 53% year-to-date, has pulled back 13% from its recent high. CEO Aaron Jagdfeld will join Jim Cramer on “Mad Money” at 6 p.m. ET Wednesday.
Chewy (CHWY): The pet supplies retailer reports quarterly earnings before the bell. The stock has lost over 26% in the past three months and is down 51% from its June high. The “Squawk Box” team will analyze the results and reaction.
Winnebago (WGO): The recreational vehicle manufacturer also reports on “Squawk Box” Wednesday morning. Shares are down 17% over three months and 30% from their early February peak.
Focus on Long-Term Principles
Amid daily market shifts and headlines, CNBC Pro LIVE emphasizes enduring investment principles. The event aims to help investors of all levels develop disciplined, long-term wealth-building strategies. Attendees can expect actionable insights and a focus on fundamentals, cutting through short-term noise.
Data and analysis sourced from CNBC’s “Stocks @ Night” producers and reporters. ETF performance and ticker symbols are provided for reference. Past performance is not indicative of future results.
