Legal risk stopped being a footnote in Meta's filings today. Multi-state litigation over harm to minors opened this week, with plaintiffs' attorneys putting potential damages as high as $1.4 trillion. That figure is an opening position, not a settlement estimate, these numbers almost always compress dramatically through litigation. But the headline number is what moves the stock, and $META fell -4.70% to $545. What the market is actually pricing: not the $1.4T, but the uncertainty. Multi-year litigation means legal provisions, discovery risk, potential product changes, and regulatory attention that spreads beyond this case. For a company running a $125B capex cycle, an open-ended legal overhang complicates every capital allocation decision. The chart broke: $META lost $600 support decisively, MACD accelerating negative at -8.35, RSI falling toward oversold at 36. The stock is now heading toward the $540-$520 purple zone, the same level that has acted as structural support since 2024. $520 is the line that matters. Hold it and this is a legal-headline dip on an oversold chart. Lose it and there's little technical structure until $480. Overreaction to an opening legal claim, or the start of a real multi-year overhang? 👇
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