Meta Platforms (NASDAQ:META) is a social media giant, but this comes with risks. The company is sometimes controversial and seems to have caught the attention of U.S. regulators. Hence, investors must weigh both Meta Platforms’ obstacles and opportunities if they’re considering buying META stock.           

Even Meta Platforms’ critics should give the company some credit for trying out different ideas and striving to improve the company’s social media apps. Yet, these endeavors might not be enough to placate some people in power positions. So, even if they’re bullish overall, investors should still consider Meta Platforms’ exposure to potentially costly legal actions.

Believers Should Hold META Stock Despite Ups and Downs

Make no mistake about it – Meta Platforms has its challenges, and I’ll get to that topic in a moment. However, if you expect Meta Platforms to surpass a $1 trillion and eventually a $2 trillion market capitalization in the future, then the best strategy is just to hold META stock.

After all, Meta Platforms is an evolving company that continues to excel in the social media market. The company constantly pushes the envelope, especially with artificial intelligence (AI) features, in its Facebook, Instagram, WhatsApp and Reels platforms.

Plus, let’s not ignore Threads, which is Meta Platforms’ answer to X (formerly known as Twitter) and also has AI-enabled features. The Wall Street Journal even published an article about Threads drawing “power users” away from X. Already, it looks like Threads is emerging as a potentially superior alternative to X, as X can sometimes be littered with “hot takes” and “rage bait.”

Furthermore, Meta Platforms is reportedly rolling out broadcast channels on Facebook and Messenger. Broadcast channels will be a feature allowing individuals to publicly distribute messages.

It’s encouraging to see Meta Platforms try out concepts like this, especially during a time when misinformation is a problem on social media. Currently, Meta Platforms is working to eliminate and prevent the spread of Hamas-related disinformation and is taking steps to prevent its AI chatbots from providing inappropriate replies. Hopefully, Meta Platforms’ broadcast channels will empower honest individuals to communicate honestly and responsibly.

Meta Platforms Faces Litigation

Even while Meta Platforms endeavors to improve its social media platforms, the company has still drawn criticism and legal actions. Reportedly, 42 U.S. state attorneys general are suing Meta Platforms, alleging (per CNBC) that features on the Facebook and Instagram platforms are addictive and are aimed at children and teenagers.

This isn’t the first time Meta Platforms has had to face legal actions. Several years ago, 48 states and territories sued the company over alleged anticompetitive practices.

In this case, the attorneys general seem to suggest that Facebook and Instagram have addictive qualities and that this is purposely engineered by Meta Platforms. Moreover, the attorneys general claim that these social media apps have a negative impact on teenagers’ mental health.

The litigation could drag on for a while. So, be prepared for the supporters and the critics to debate the controversial issues surrounding Meta Platforms. Your best strategy is to stay tuned and watch for Meta Platforms’ response to the aforementioned allegations. This will be crucial, as Meta Platforms reputation is on the line and the company’s bottom line could be affected.

Bull or Bear? Pick Your Side With META Stock

I’ve laid out the bull case for Meta Platforms, but the bears can point to Meta Platforms’ legal issues. Suffice it to say, both sides can construct a persuasive argument.

Even with the litigation that Meta Platforms will have to deal with, I expect that company to grow its market cap over the long run. It won’t be easy, though, since the bulls and bears will undoubtedly continue their tug-of-war.

So, now’s the time for you to pick a side. If you’re bullish like I am, feel free to hold your position in META stock through the end of 2023 at least. There will be challenges to face, but Meta Platforms should survive and continue to generate strong revenue for the foreseeable future.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.