Meta Platforms Inc (NASDAQ:META) fell more than 4% at the market open on Monday to $478.7, its lowest point in nearly a month. While the tech giant’s performance this year remains strong, there are two key factors weighing on META’s share price right now.
Why Meta stock is down today
The Wall Street Journal reported on Monday that users of Facebook’s Marketplace are becoming increasingly unhappy with the feature and that appears to be one of the factors driving down the Meta stock price today.
The report says that Marketplace users are encountering numerous issues, including counterfeit listings, fraudulent payment schemes, or receiving products that don't live up to their descriptions on the platform.
Sellers, on the other hand, often face scams from "buyers" who present fake payment confirmations or are bombarded with seemingly endless inquiries asking, "Is this still available?"
These issues are documented in the Better Business Bureau’s Scam Tracker database, which contains a plethora of complaints from Facebook (NASDAQ:META) Marketplace users about being victims of fraud.
The WSJ report added that TSB, a retail bank in Scotland serving over five million customers, discovered in January that 60% of purchase fraud cases reported by its clients in 2023 stemmed from Facebook Marketplace, marking a twofold increase within a year.
The bank alerted that approximately one-third of the listings on the platform seemed fraudulent, urging Meta to enhance protections for users.
Another catalyst weighing on Meta stock on Monday is comments made by Donald Trump about the company’s social media platform, Facebook.
Trump Slams Meta
During his CNBC "Squawk Box" interview on Monday morning, the former U.S. president slammed TikTok and Facebook, calling the latter an “enemy of the people.” TikTok, on the other hand, represents a national security threat, Trump believes.
The 77-year-old had initially endorsed efforts to ban TikTok in the U.S. but has recently made a U-turn. When asked about why he changed his mind, he said he could have banned the app during his presidential term, but instead chose to leave it up to Congress.
“But as you know, I was at the point where I could have gotten it done if I wanted to. I should have said, you guys decide, you make that decision because there are a lot of people who talk that love it," Trump said.
"There are a lot of young kids on TikTok who will go crazy without it. There are a lot of users.”
He also said that a TikTok ban could inadvertently benefit Facebook.
“There’s a lot of good and there’s a lot of bad with TikTok. But the thing I don’t like is that without TikTok, you can make Facebook bigger and I consider Facebook to be an enemy of the people along with a lot of the media," he said.
Following the Jan. 6, 2021, Capitol attack, Meta suspended Donald Trump's Facebook and Instagram accounts due to posts that were deemed inflammatory. After a two-year provisional suspension, Meta reinstated his accounts last year.
Meta stock has risen nearly 40% since the start of 2024, outperforming the broader S&P 500’s gains of 7.6%.