FTC Appeals to Revive Antitrust Case Against Meta Platforms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Antitrust Case Revival: The U.S. Federal Trade Commission (FTC) plans to appeal to revive its case against Meta, alleging that the company established an illegal monopoly through its acquisitions of Instagram and WhatsApp, which could force Meta to restructure or divest these assets to restore competition.
- Court Ruling Impact: Last year, U.S. District Judge James Boasberg ruled that Meta does not hold a monopoly as it faces competition from TikTok, a decision that thwarted the FTC's initial claims and allowed Meta to avoid significant business restructuring.
- Acquisition Background: The FTC highlighted that Meta spent billions on acquiring Instagram and WhatsApp to eliminate nascent competitors, and the legality of this strategy is now under scrutiny, potentially impacting future acquisition strategies and market behavior.
- Market Competition Outlook: Should the FTC's appeal succeed, Meta may need to take actions to restore competition, which could not only affect its market share but also alter the competitive landscape of the social media industry, prompting other tech companies to reassess their acquisition strategies.
Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 620.250
Low
655.15
Averages
824.71
High
1117
Current: 620.250
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
