Meta’s (META) shares edged higher early Wednesday despite a return of focus on the tech giant’s efforts to crack down on rogue financial scam ads on its social media platforms.
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According to Reuters, a review by the UK Financial Conduct Authority (FCA) found that a little over half of ads promoting foreign exchange trading and contracts for difference (CFDs) within a week in November were from unauthorized advertisers that the British watchdog had previously flagged to the social media giant.
CFDs are complex derivative instruments that let traders speculate on the price movement of an underlying asset, such as a stock, without owning it. However, they carry a high risk of rapid losses due to leverage and are tightly regulated, including in the UK.
UK Battles Social Media Ad Scams
The prevalence of forex and CFD scams on social media platforms has caused unsuspecting users massive losses of their savings. This has been a major headache for regulators, who continue to push for greater platform monitoring to stem the tide.
The FCA found that 1,052 such ads were posted in the said month, the outlet reported. In the subsequent month, the financial watchdog also found a few repeat offenders.
However, a spokesperson for Meta told the news organization that the social media company takes the FCA’s illegal advertiser reports seriously and continues to take measures to shield users against scams.
The new report increases pressure on Meta to do more to remove bad actors from its platforms. Currently, the tech giant is facing a trial from the U.S. state of New Mexico, which has accused Meta of not doing enough to prevent adults from being able to solicit sexually explicit images from underage users of its platforms.
Is META Stock a Buy or Sell Right Now?
On Wall Street, Meta’s shares continue to enjoy a Strong Buy consensus rating from analysts. This is based on 39 Buys and five Holds issued by 44 analysts over the past three months.
In addition, the average META price target of $858.86 suggests about 38% upside from current trading levels.
