Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Trump Labels Facebook Enemy, Meta Stock Plunges

Facebook is back in the spotlight as former President Donald Trump takes aim, sending jitters through Wall Street
March 21, 2024

In the latest twist of the tech saga, Meta Platforms, the parent company of Facebook, finds itself once again under the spotlight due to none other than former President Donald Trump. This unexpected turn of events has sent ripples through Wall Street, causing a stir among traders.

On Monday, Meta's stock, ticker symbol META, experienced a notable 4% drop following Trump's remarks labeling Facebook as "an enemy of the people" during a call to CNBC. The decline persisted, with Meta shares dipping by 1.2% on Friday, coinciding with Trump's scathing comments on Truth Social, where he reiterated his stance against Facebook.

The repercussions of Trump's verbal assault on Meta have been tangible, with the company witnessing a staggering $60 billion decline in market valuation since the onset of Trump's critiques last Thursday. Surprisingly, this downturn in Meta's fortunes appears to be primarily driven by Trump's condemnatory rhetoric rather than any significant operational developments within the company.

Analysts like Gil Luria from D.A. Davidson attribute Meta's market woes directly to Trump's statements, highlighting the recurrent pattern of Facebook being embroiled in political debates, a scenario that seldom bodes well for the tech giant.

Trump's recent volte-face on TikTok, where he now opposes the ban advocated by many, including some in Congress, is raising eyebrows. Trump's rationale revolves around his belief that banning TikTok would inadvertently benefit Facebook, a company with which he has a protracted history of discord.

Expressing his sentiments on CNBC, Trump articulated, "The thing I don't like is that without TikTok, you can make Facebook bigger, and I consider Facebook to be an enemy of the people, along with a lot of the media."

This antagonistic relationship between Trump and Facebook dates back to the aftermath of the January 6, 2021, Capitol riot, which led to Facebook imposing a two-year ban on Trump. Despite Meta's subsequent reinstatement of Trump's accounts in February 2023, the animosity remains palpable.

Trump's unabashed criticism of Facebook's impact on the nation, particularly regarding elections, underscores his vehement stance against the social media giant, leaving Meta in a precarious position.

Investors, cognizant of the potential ramifications of Trump's tirade, responded by driving Meta's shares down by nearly 5% on Monday, marking one of the company's worst trading days since December 2022.

According to Luria, Trump's verbal assault rekindles concerns about Facebook once again becoming a prime target for regulatory scrutiny, particularly if Trump were to return to power.

The specter of regulatory intervention looms large, with potential repercussions for Meta's future acquisition endeavors. Previous acquisitions like Instagram and WhatsApp have been pivotal to Meta's growth trajectory, and any impediments to future acquisitions could pose significant challenges for the company's competitiveness.

While Trump's influence in the social media landscape remains potent, recent developments, including regulatory approvals for Trump Media & Technology Group's merger, hint at a complex interplay of power dynamics shaping the tech industry's landscape.

As Meta grapples with the fallout from Trump's verbal salvos, the broader implications underscore the intricate relationship between technology, politics, and market dynamics, with Meta at the center of this evolving narrative.

More about:  | |

Last related articles

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram