©Reuters
Meta Platforms, Inc. (NASDAQ:) fell more than 4% at the market open on Monday, hitting a nearly one-month low of $478.7. While the tech giant’s performance this year remains strong, there are two key factors currently weighing on META stock.
Why is Meta stock down today?
The Wall Street Journal reported Monday that Facebook Marketplace users are becoming increasingly frustrated with the feature, which appears to be one of the factors driving down Meta’s stock price today.
According to the report, users of the marketplace have encountered a number of issues, including counterfeit product listings, fraudulent payment schemes, and receiving items that are not as described on the platform.
Sellers, on the other hand, often face fraud from “buyers” offering fake payment confirmations or endless inquiries asking “Is this still available?”
These issues are documented in the Better Business Bureau’s Scam Tracker database, which contains a large number of complaints from Facebook (NASDAQ:) Marketplace users about being victims of scams.
The WSJ report further states that Scottish retail bank TSB, which serves more than 5 million customers, found that 60% of purchase fraud incidents reported by customers in 2023 were attributed to Facebook Marketplace, and that in 2023 It added that it was discovered in January that the number of cases had doubled within the same period.
The bank warned that around a third of the listings on its platform appeared to be fraudulent and urged Meta to better protect its users.
Another factor weighing on Meta stock on Monday was Donald Trump’s comments about the company’s social media platform, Facebook.
President Trump slams meth
In an interview on CNBC’s “Squawk Box” Monday morning, the former U.S. president slammed TikTok and Facebook, calling them “enemies of the people.” Meanwhile, Trump believes TikTok is a national security threat.
The 77-year-old initially supported efforts to ban TikTok in the United States, but recently reversed course. Asked why he changed his mind, he said he could have banned the app during his presidential term, but instead chose to defer to Congress.
“But, you know, I was at a stage where I could go through with it if I wanted to. I should have said, you guys are going to make that decision because there are a lot of people who like it. ” President Trump said.
“TikTok has a lot of young kids who would be hooked on it if it wasn’t for TikTok. There’s a lot of users.”
He also said that banning TikTok could unintentionally benefit Facebook.
“There are a lot of good and bad things about TikTok. But what I don’t like is that without TikTok Facebook could be big and I think Facebook, along with a lot of media, is an enemy of the people.” That’s the thing,” he said.
After the January 6, 2021, attack on the Capitol, Meta suspended Donald Trump’s Facebook and Instagram accounts for posts deemed inflammatory. Mehta reinstated his account last year after a two-year interim suspension.
Meta shares are up nearly 40% so far in 2024, outpacing the broader S&P 500’s 7.6% gain.
