Meta poised to end seventh session in the red amid FTC trial concerns
April 21, 2025
Meta Platforms’ (NASDAQ:META) shares continued to bleed for the seventh consecutive session on Monday as its shares declined 3.69% to $483 during afternoon trading.
The tech giant’s shares have ended in the red every trading day since April 10. Ever since then, the company has lost over 8% of its value. On a year-to-date basis, the company has lost more than 16% compared to a 10% fall in the broader S&P500 index.
On April 9, Meta shares jumped nearly 15% after Donald Trump announced a 90-pause on his planned reciprocal tariffs providing a relief to global markets. Following this, the firm’s chief executive Mark Zuckerberg reportedly added nearly $26 billion to his wealth as markets rebounded.
The big tech firm is also currently undergoing a Federal Trade Commission trial seeking to reverse Meta’s decade-old acquisitions of WhatsApp and Instagram. The antitrust commission alleges that the Facebook owner had acquired the messaging platform and the photo-sharing app to thwart competition.
Looking at Seeking Alpha’s quant rating, the company has a Hold rating with a score of 3.39 out of 5. It has an A+ for profitability but an F for valuation. On the other hand, Seeking Alpha analysts recommend to Buy the stock whereas Wall Street analysts have a Strong Buy call.
Seeking Alpha analyst Simple Investment Ideas has expressed concerns over Meta’s aggressive AI investments. They point to Chinese firms such as DeepSeek, whose R1 model has outperformed Meta’s offerings with significantly less capital. The analyst is bearish about Meta’s strategy and its ability to maintain a technological edge despite its strong financials.
However, another analyst Deep Value Investing believes that the company is well-positioned to mitigate the risks arising from the FTC case as well as the possibilities of European Union’s levies on digital advertising revenue.
“Despite the risks of a levy on ads in the EU, I believe the new administration will reach a deal that will favor both parties. Furthermore, I believe Meta will win the FTC case. Overall, I anticipate a bull run over the next 84 days. I rate Meta as a strong buy with this timeframe in mind,” they argued.
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