Meta Platforms Shares Slide Amid Regulatory Pressure and Economic Uncertainty: What's Going On Lately?
Shares of Meta Platforms have dropped 7.6% over the past week amid regulatory scrutiny and economic uncertainty. The U.S. government has initiated an antitrust trial against Meta, accusing it of maintaining a monopoly through acquisitions like Instagram and WhatsApp. CEO Mark Zuckerberg defended the company's strategy, emphasizing the need for scale. Concerns over inflation, slowing growth, and potential tariffs affecting hardware costs have further pressured Meta's stock, which is currently trading at $491.45. Investors are wary of reduced ad spending and delayed interest rate cuts impacting tech valuations.
Shares of Meta Platforms Inc META are down 7.6% to $491.45 over the past week, but are higher by 1.4% during early Tuesday trading. Meta’s recent decline follows hawkish comments from Federal Reserve Chair Jerome Powell, who warned of stubborn inflation and slowing growth exacerbated by new trade tariffs.
Meta is also under mounting regulatory scrutiny as the U.S. government launches a high-stakes antitrust trial. The Federal Trade Commission accuses Meta of sustaining a monopoly in social networking through anti-competitive acquisitions—specifically Instagram and WhatsApp.
CEO Mark Zuckerberg defended Meta's strategy in court, arguing that scale is essential to compete globally, particularly against rivals like TikTok.
What It Means: As a company heavily reliant on digital advertising, Meta is vulnerable to economic slowdowns. Powell's remarks on weakening first-quarter growth and persistent inflation spooked investors, raising concerns about reduced ad spending.
Tariffs may further pressure Meta's margins by increasing hardware costs tied to its VR and AR products, including Quest and Ray-Ban Meta smart glasses.
Additionally, Powell's signal that interest rate cuts may be delayed is another blow. Higher rates weigh on tech valuations and raise funding costs for Meta's long-term initiatives in the metaverse and AI infrastructure, potentially slowing innovation and ad market recovery.
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How To Buy META Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Meta Platforms’ case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, META has a 52-week high of $740.89 and a 52-week low of $414.50.