Mark Zuckerberg's Meta Withheld Key Details In Instagram And WhatsApp Acquisitions, FTC Claims
Portfolio Pulse from Shivani Kumaresan
Meta Platforms Inc (NASDAQ:META) is facing allegations from the FTC for withholding information during its acquisitions of Instagram and WhatsApp. The FTC is pushing to dismantle Meta through an ongoing lawsuit, claiming that Meta did not provide crucial pre-acquisition documents. Meta argues that its investments in Instagram and WhatsApp have benefited consumers. Meta's stock has gained over 99% in the last 12 months, and investors can gain exposure through ETFs like Vanguard Communication Services ETF (NYSE:VOX) and Communication Services Select Sector SPDR Fund (NYSE:XLC).
June 05, 2024 | 4:41 pm
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Meta Platforms Inc is under scrutiny by the FTC for allegedly withholding information during its acquisitions of Instagram and WhatsApp. The FTC aims to dismantle Meta through an ongoing lawsuit.
The FTC's allegations and ongoing lawsuit could lead to significant legal and regulatory challenges for Meta, potentially impacting its stock negatively in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Vanguard Communication Services ETF (NYSE:VOX) provides exposure to Meta, which is currently facing FTC allegations. This could impact the ETF's performance.
As Meta is a significant holding in the VOX ETF, the legal challenges faced by Meta could negatively impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Communication Services Select Sector SPDR Fund (NYSE:XLC) includes Meta, which is under FTC scrutiny. This could affect the ETF's short-term performance.
Given Meta's significant weight in the XLC ETF, the FTC's legal actions against Meta could adversely affect the ETF's short-term performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50