Meta Platforms (META) is facing new claims from two former employees who claim the company buried research on the safety of children in its virtual reality products. The whistleblowers told a Senate subcommittee that internal studies showed kids faced risks from adult contact and graphic content inside the company’s metaverse platforms. They said instead of fixing these problems, Meta cut back on research and controlled what findings could be shared.
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One of the former staff members, Jason Sattizahn, claimed that safety work only moved forward when it could help drive user activity and profit. He also said Meta’s legal team reviewed projects closely after earlier leaks from Frances Haugen in 2021 and even threatened jobs if research did not follow company lines. Another former staffer, Cayce Savage, said Meta canceled research on how many underage users were on the platform because a more accurate count would have forced Meta to shut down accounts and reduce engagement.
These testimonies from Meta’s former employees add another layer to the company’s ongoing legal and ethical battles in recent years, with Cambridge Analytica serving as the opening shot.
Meta’s Response and Investor Context
Meta has denied the claims, calling them selective and misleading. The company said it has approved nearly 180 studies on youth safety and well-being since 2022 through its Reality Labs division. It also said the internal documents behind the hearing were not accurate and have been removed. In addition, Meta recently announced new policies that include training its AI systems to avoid responding to teens on sensitive topics.
This comes as lawmakers from both parties increase scrutiny on Meta’s products and practices. A Senate panel has already opened a new investigation into whether Meta’s generative AI tools could be used to exploit children. At the same time, Meta continues to invest billions of dollars in AI projects like chatbots and smart glasses. Chief executive Mark Zuckerberg has also relaxed content rules in ways that critics say favor the current political climate.
For investors, the issue highlights the tension between Meta’s growth in AI and virtual reality and the rising policy risk tied to child safety and content oversight. The company, valued at about $1.9 trillion, is balancing these headwinds while pushing forward with its long-term plan in new technology.
Is META Stock a Buy, Sell, or Hold?
Turning to Wall Street, Meta continues to have the backing of analysts with a Strong Buy consensus. Out of 48 ratings, 42 signal a Buy, with no Sell ratings. The average META stock price target is $873.14, implying a 14.03% upside from the current price.
