Meta settlement could clear the way for new AI product launches, Morgan Stanley says

Meta CEO Mark Zuckerberg wears the Meta Ray-Ban Display glasses, as he delivers a speech presenting the new line of smart glasses, during the Meta Connect event at the company's headquarters in Menlo Park, California, U.S., Sept. 17, 2025. Carlos Barria | ReutersMeta's $18 billion social media settlement lifts a legal overhang that some analysts say could clear the way for a wave of new AI product launches.The tech giant went to trial in August after a lawsuit filed by 29 U.S. state attorneys general alleged that its platforms, Instagram and Facebook, had design features that posed harms to younger users.In week two of the trial, Meta and the states agreed to a settlement in which Meta said it would make core changes to its platforms for users under 18. These range from a two-hour daily usage limit to disabling extreme makeup and cosmetic surgery filters and introducing tighter age verification measures. The outcome raised investor concerns about reduced advertising revenue, and analysts at Morgan Stanley said that substantial lawsuits often drive tech giants to release innovative new products and offerings. "We see multiple new products in the pipeline from Meta (MetaClaw/a better...