Shares of Snap are trading lower amid possible pressure from the terms of Meta Platforms' $18 billion child social media addiction settlement with 29 U.S. states. The deal comes a day after Pennsylvania's Attorney General sued Snap for using features designed to keep children compulsively engaged, which may yield concerns of a harsh settlement.

PINS' Growing ARPU Signals Stronger Monetization: Will the Trend Last?

Pinterest reported 7% year-over-year global ARPU growth to $1.86 in Q2, driven by AI-powered features and Performance+ campaigns. However, the company faces intensifying competition from Snap (13% ARPU growth) and Reddit (36% ARPU growth), which posted stronger gains. Pinterest trades at a favorable valuation with improving earnings estimates but carries a Hold rating.

Live On CNBC, California Attorney General Rob Bonta Says "We're Suing TikTok Now"; Says We Have Communications With Snap About These Issues As Well, And We Are Very Interested In YouTube

What Is Going on With Meta Platforms Stock on Wednesday?

Meta stock rises over 2% on Wednesday after agreeing to a $17 billion settlement with U.S. states to resolve child-safety and platform addiction claims.