Meta Platforms’ $18 billion settlement with 52 U.S. state attorneys general over teen usage removes a significant risk overhang, Citi analyst Ronald Josey said, assuming YT and TT join the agreement. The consent order limits 13- to 17-year-olds on Facebook and Instagram to two hours of daily use, with nighttime and school-hour blocks and prompts after extended sessions. Citi said the impact should be manageable because the average teen uses Instagram for about an hour daily, teens generate less than 1% of Meta’s revenue, and they are already excluded from interest, behavior and demographic ad targeting. The settlement is also well below the $200 billion and $1.4 trillion figures initially contemplated by state attorneys general. Meta will record a $10 billion legal expense accrual in the third quarter, increasing its 2026 expense guidance. Litigation risks remain, including New Mexico’s appeal and about 1,200 school district cases. Citi reiterated its Buy rating and $800 price target, identifying Meta Connect on Sept. 23 as a potential catalyst.