According to Reuters, U.S. senators asked regulators to open a new investigation into Meta Platforms (META), after the publication reported claims that the firm may generate close to 10% of its annual revenue from ads promoting scams or banned goods. Reuters reported that internal files from late 2024 showed that Meta could earn about $16 billion a year from these ads. The files also said Meta could bring in $3.5 billion every six months from higher-risk ads that may mislead users.
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Meta said the claims are wrong. The firm claimed that reports of scams on its apps fell by 58% over the past 18 months. Meta said users do not want scam ads and that the firm tries to stop them. Even so, the senators said a fresh look is needed. They stated that Meta cut back on safety staff while scam ads stayed live on the apps. They also pointed to the firm’s public ad library, which still shows clear signs of a scam.
On Friday, META shares rose a modest 0.87% to close at $594.25.
How Investors May See the Issue
The senators’ letter does not initiate a formal case. Even so, it draws new attention to Meta at a time when the firm faces a set of long-running checks into its ad rules. In the near term, this can lead to swings in the stock as new regulatory guidance or past staff files are released.
However, the stock impact can stay limited unless the Federal Trade Commission (FTC) or the Securities and Exchange Commission (SEC) takes action that could force changes to ad review or lead to new costs. Meta has strong cash flow, and the firm has worked through past checks tied to user data and ad screens. Investors also know that large tech firms often face tough letters from lawmakers.
Even so, further steps from regulators could raise the chance of higher costs or small shifts in ad policy. Those steps can weigh on profit growth if they cut into ad sales. Investors will watch for any sign that Meta will spend more on safety or that it will slow ad sales in high-risk groups. For now, the story is more about headline risk than a meaningful shift in the stock’s long-term path.
What Is the Price Target for META Stock?
Turning to the Street’s analysts’ view, Meta Platforms boasts a Strong Buy consensus rating. The average META stock price target is $839.23, implying a 41.23% upside from the current price.
