Former President Donald Trump’s recent attacks on Meta Platforms, the owner of Facebook, have sent shockwaves through Wall Street, causing concern among traders. Trump’s criticism of Facebook as “an enemy of the people” has led to a significant drop in Meta’s market valuation, with shares falling by about 4% on Monday and 1.2% on Friday.
The former president’s comments have reignited the debate over the role of social media companies in politics, with some analysts warning that Facebook could once again become a target of Washington. Trump’s remarks have raised fears that if elected president again, he could take actions to limit Meta’s growth, such as making it harder for the company to make acquisitions in the future.
Despite his criticism of Facebook, Trump himself is heavily involved in social media, with his Truth Social platform set to merge with a blank-check company, potentially making him a dominant stakeholder in a newly-public company worth billions. Meanwhile, the House is set to vote on a bill that would give TikTok a deadline to separate from its China-linked parent company, a move supported by President Joe Biden.
As investors closely monitor the situation, the future of social media companies like Meta and TikTok remains uncertain in the face of political scrutiny and regulatory challenges.