CNBC host Jim Cramer said Meta Platforms Inc. 's (NASDAQ: META ) $17 billion child safety settlement will likely have a smaller financial impact than many investors expect, calling it "barely material" to the company's earnings once spread over a decade.

'It Could Have Been Disastrous'

Cramer said the settlement could end up being far smaller once spread over its full ten-year term, saying it is "not impactful" compared to what he originally feared.

"It could have been disastrous," he said in a post on X. "Instead it is barely material to earnings."

Don't want to go against the grain too much, but the actual settlement that Meta agreed to could turn out to be a lot less than people think and give it is over ten years it is NOT impactful versus what i thought could happen….it could have been disastrous. Instead it is barely…

— Jim Cramer (@jimcramer) August 30, 2026

Last week, Cramer called the settlement a "big win" for Meta, saying the company could have faced fines of up to $200 billion and years of litigation had the case gone to trial.

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The Settlement

Meta agreed to pay up to $17 billion over 10 years to resolve claims from 29 states accusing the company of designing its platforms to addict children, while denying any wrongdoing.

Shares of the company have fallen more than 11% year-to-date and over 21% over the past year.

Analysts Agree the Payout Is Small

Futurum Equities ' market strategist Shay Boloor said the settlement " sounds enormous until you put it against the earnings machine," noting Meta is expected to generate about $340 million in profit per day by 2028, meaning the entire settlement equals roughly 49 days of profit.

Deepwater Management 's Gene Munster said the $1.8 billion in annual penalties looks small against Meta's projected annual free cash flow of $40 billion to $60 billion by 2029.

The settlement removes the risk of an " existential adverse verdict " that could have approached $1.4 trillion, roughly equal to Meta's market cap, investor Gary Black said, though he warned it likely won't eliminate the thousands of individual lawsuits still pending.

Price Action: Meta closed 1.12% higher on Friday at $578.02 and gained 0.06% in extended trading.

Benzinga edge rankings indicate Meta's stock has a Momentum score in the 9th percentile and a Growth score in the 78th percentile.

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Disclaimer : This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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This article Jim Cramer Says Meta's $17 Billion Child Safety Settlement 'Could Have Been Disastrous,' Instead It's 'Barely Material to Earnings' originally appeared on Benzinga.com