Magnificent seven stock metords NASDAQ: met He is constantly spinning headlines. Three analysts reduced shares in April, and the shares do not work regarding the care of tariffs. However, in other major news, Meta is looking for help from President Trump To avoid mass legal battle on the horizon.
Meta platforms today
As of 04:00 on the East
- 52-week range
- $ 414.50
▼
$ 740.91
- Dividend yield
- 0.38%
- P/e ratio.
- 22.84
- Value is valuable
- $ 704.62
Meta must participate in Antimonopoly trial with the Federal Trade Commission (FTC) on April 14. The rates for the company could not be higher. The test can lead to a significant decay of the company, forcing Meta to get rid of its WhatsApp and Instagram platforms.
As Wall Street Journal (WSJ) first reported Meta is trying to earn favor with President Trump to solve this problem. The Chief Executive Director (General Director) Mark Zuckerberg wants to get to the settlement with the White House, which may stop the trial.
The analysis below will be Explain why this test is so important for a technological company, and discuss its details and possible resultsField
Understanding Instagram and WhatsApp: META key assets
The importance of this test lies in the heart and soul of the META business. Meta is an advertising company, first of all. He earns money from the sale of advertising, which shows billions of people who use his family of applications. The META family includes Facebook, Instagram, Facebook Messenger, Threads and WhatsApp. One of the reasons why Meta was able to collect such a successful advertising business is associated with a huge number of users on these platforms. The meter has 3.35 billion daily active people (DAP) in these applications.
Meta does not say how many users he ascribes to each application, and a third -party DAP is difficult to find. Nevertheless, these from the statists evaluate that Instagram and WhatsApp have two billion active users per month. This is compared with Facebook a little less than 3.1 billion. Despite the imperfect, these numbers show that Instagram and WhatsApp are a huge amount of META user base.
In terms of income, Instagram is especially important for Meta than whatsApp. Using data from application business, Instagram accounted for about 41% of the total income of META compared to a little more than 1% for WhatsApp.
If Meta could no longer own these applications, this would have a huge impact on the company’s advertising business. Of course, Meta can sell them for billions, but this will certainly save them from the growth that they help to generate, and the strategic advantages that they provide.
Meta against FTC: regulators claim anti -competitive practice
MARKETRANK ™ Metforms Analysis of reserves
- General market ™
- 84th percentile
- Analyst rating
- Moderate purchase
- Breaking/disadvantage
- 29.0% growth
- Short level of interest
- Healthy
- The power of dividends
- Weak
- Environmental assessment
- N/a
- Mood news
- 0.82
- Insider trade
- Sale of shares
- Professe Earnings growth
- 13.15%
See full analysis
The main argument of the trial is that Meta bought its growing competitors, Instagram and WhatsApp over the years to suppress competition. META bought Instagram in 2012 for $ 1 billion And WhatsApp in 2014 for $ 19 billion. FTC accuses meta of using the “buy or bury” scheme. This implies this I bought these companies to just prevent them from competing with them, and not grow them.
Financial Times (FT) indicates the expected META arguments against this. He will strive to argue about the opposite of what the FTC accuses, proving that he had grown on these platforms, and did not send them to die.
The meter has a very solid case to do in this regard. The business of applications evaluates that Instagram income is a little less than $ 67 billion. In 2015, this figure amounted to less than $ 500 million. From 2018 to 2024, business applications evaluates that WhatsApp income increased from $ 443 million to almost 1.8 billion dollars. Both cases show evidence of mass growth.
FT notes that the judge in this case James Boasberg, “in the past, was skeptical of FTC arguments.” Initially, he rejected the case in 2021. However, after the FTC made changes to the complaint, he allowed him to continue. Boasberg said: “FTC put forward evidence sufficient for reasonable factors to manage in his favor.”
Meta has a chance to fight, even if Trump cannot help
In general, it is unclear how much Trump can affect this claim. FTC is an independent agency; The president should not influence this. Given that the trial is in less than a week, it, according to the visible, will continue. WSJ notes that FTC chairman Andrew Ferguson “was a frank critic of large technological companies.”
Nevertheless, Antimonopoly Expert Joseph V. Konillo says the growth of Instagram and WhatsApp “decisively weighs the final decision in favor of the company.” For investors, this is a very important case that should be monitored.
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