Meta's legal risks from ad pricing lawsuits are negligible relative to its size; AI-driven ad spend growth will offset minor revenue impacts, making current weakness a buying opportunity.

Uh less so with Meta, though there is a pricing lawsuit or mechanism lawsuit against Meta uh as well.

And then there's a smaller allegation that maybe even Meta is involved and they're all trying to scam you.

sorry, not Amazon, Meta. The allegations against Meta were that they inflated the potential reach of ads because there are so many duplicative and fake accounts. That was with the DZ reserve case claiming 7 billion in damages.

And then Iron Tribe has a lawsuit against them claiming that there are some funky pricing mechanics going on. Also similar to this second price auction thing we just outlined on the whiteboard. uh claiming that uh Meta just used sort of a blended price that raised your ultimate fee that you had to pay.

when it comes to the actual fines versus what's really going on here, uh there are allegations that Meta is going to lose bigly in court, but usually they end up these are private lawsuits against Meta might end up costing them a few billion bucks.

Uh which sounds like a lot, but for the scope of these trillion dollar enterprises, it's a drop in the bucket.

So really the bottom line of this Amazon case and the Meta case and the Google case is that these companies got to clean up their act a little bit otherwise they're going to get a whole lot more lawsuits.

And my takeaway from all of this is that what'll probably happen is Google, Amazon, and Meta will clean up the transparency around their bid auctions because now that this is becoming so public, they don't want to be exposed to scamming their customers more than they already have.

And so there could be a slight slowdown in advertising revenue, advertising growth levels in the future because of these changes.

But honestly, and this is like my my maybe I'm too bullish on this, and I'm only exposed to meta out of all of these, which has really the least risk out of all three of these,

but my bottom line takeaway out of this, frankly, AI is going to spend way more money on advertising than this hit is going to cause. So, even though it's scummy what happened, the odds are markets are just going to paper over these advertising issues and they'll end up being a non-issue,

I just happen to think now that that punishment is in, they actually create a buy the dip opportunity for these guys. That's my take on Amazon, Meta, and Google and this FTC lawsuit.