Meta Platforms (META) is prepared for a legal battle with the Federal Trade Commission (FTC) over claims that the Facebook parent company harmed competition by buying Instagram and WhatsApp. Meta Platforms, previously named Facebook, bought Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014.
The allegations made by the FTC include that Meta Platforms acted as a social media monopoly. If the regulator wins this case, Meta Platforms could be forced to sell Instagram and WhatsApp.
On the other hand, Meta could be saved by President Donald Trump. He could pressure the FTC to drop the case as CEO Mark Zuckerberg has shifted his tone to better work with the President.
The FTC’s Argument Against Meta
The Meta Platforms vs. the FTC trial starts today and is set to last until July 3. During that time, the FTC will argue that Meta Platforms has harmed competition in the social media space to create a monopoly.
While it’s true that Meta has built up its business with acquisitions, it still has plenty of competition in the social media sector. That includes rivals such as X, formerly Twitter, TikTok, Snap (SNAP), Bluesky, and others. This could make it difficult for the FTC to win its case against the Facebook owner.
META stock investors appear unfazed by the FTC trial starting today. The company’s shares were up 1.21% in pre-market trading on Monday. However, the stock is still down 7.08% year-to-date alongside market volatility.
Is META Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Meta Platforms is Strong Buy based on 42 Buy, one Hold, and one Sell ratings over the last three months. With that comes an average price target of $733.67, representing a potential 34.97% upside for META stock.
