Key Stats for Meta Stock
- Price change for Meta stock in last 6 months: 15%
- $META Stock Price as of Oct. 8: $721
- 52-Week High: $780
- $META Stock Price Target: $799
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What Happened?
Meta ( META) has banned ads from ByteDance, the Chinese parent of TikTok. A company spokesperson confirmed it on Thursday. Bloomberg News reported it first.
The ban takes effect right away in the U.S., Canada, Egypt, Indonesia, Japan, Thailand, and Vietnam.
It also covers third-party advertisers whose campaigns link to TikTok or other ByteDance apps in those countries.
Meta defended the move. It said declining to promote a competitor is “normal business practice.”
It added that it will keep competing on product quality and user experience. TikTok and ByteDance didn’t immediately respond to requests for comment.
TikTok has become one of Meta’s toughest rivals for users, creators and ad dollars. In the U.S., it operates as a majority-American-owned joint venture. It has more than 200 million users there.
There is a teen safety angle too.
In August, Meta settled with U.S. states over social media harms to children. The deal was worth up to $18 billion.
Meta has been urging TikTok and YouTube to follow the steps it agreed to take.
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What the Market Is Telling Us About Meta Stock
This move shows Meta is willing to play hardball. It also shows how seriously it takes TikTok.
For Meta stock, the direct money impact looks small. Ads are the core business, but this is one advertiser group being turned away.
The bigger story is Meta’s strength. Q2 revenue hit $60.8 billion. Ad revenue grew 27%. Management said AI is improving ad performance and recommendations. Ad impressions rose 14%, and the average price per ad rose 12%.
Meta also guided Q3 revenue to $61 billion to $64 billion. That points to continued growth.
Costs are the other side. Q2 expenses jumped 55% to $42 billion. That included $2.4 billion in legal charges and $1.2 billion in severance.
Operating income fell 8%. Free cash flow was just $784 million. Full-year capital spending is expected at $130 billion to $145 billion.
Legal risk is still in view. Management warned that youth-related trials this year could lead to a material loss. That is a key risk for Meta stock.
For now, Meta stock will likely trade on ad growth against heavy AI spending. Investors in Meta stock will also watch how the TikTok rivalry plays out.
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So what is Meta stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
