Meta stock rebounding amid TikTok controversy
Shares of Meta Platforms (META) are rebounding on Tuesday following the stock's worst single-day performance on Monday. This comes after former President Trump claimed to CNBC that a ban on TikTok would effectively boost Meta, which he labeled "an enemy of the people."
Yahoo Finance's Bradley Smith and Seana Smith discuss the shifting enthusiasm for Magnificent Seven names.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith
Video Transcript
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BRADLEY SMITH: META shares bouncing back in the pre-market after having its worst day in over four months yesterday. Former President Trump claiming to CNBC a ban on TikTok would give a boost to META, making it's an enemy-- an enemy of the people he said. You're taking a look at shares of META here up by about 1.5%. Uhm, you know, the comments are particularly interesting because that's also where his campaign advertises during the election season.
In fact, President Joe Biden and former President Trump, both of them according to Facebook data, spent a combined, in the previous election, over $175 million on Facebook ads through the weeks leading up to the election. So that year, not even an entirety of those campaigns spending, uhm, a great amount of money just to try and woo over some of the voters, swing states, uh, what-- what have you. And it's a larger question of how much that spending would continue to move forward even in this election on Facebook proper or some of its other subsidiary products as well.
SEANA SMITH: Yeah. I think that's a big question. And then also just largely speaking, what we have seen, the trend, the rollover that's starting to form here in some of those Mag Seven stocks, which META has, is obviously a part of here. They're coming off a massive run-up from 2023 and then also have had a strong start to 2024. So we are seeing investors just shift their tone a little bit just in terms of those expectations for some of these Mag Seven names and whether or not we are going to see a potential shift here that has started to brew in the market, whether or not this is a start of a larger trend.
Because, remember, the market closed down. The Dow closed down, uhh-- for the third down week since October. Mag Seven starting to prove that maybe it's not as powerful as it once was. Or at least as powerful as it was during 2023 and during that rally here. So again, the cracks are starting to form META, far from the only larger tech name that had been under pressure in yesterday's trading action. So you couple that along with what we heard from former President Donald Trump, and then that was the setup to yesterday's decline here. So will be interesting to take a look at how META opens today and then what that trading action looks like in the coming days.
BRADLEY SMITH: He's also got an interest in making sure that Facebook doesn't succeed as well as it possibly could because he also owns Truth Social at the end of the day too. So in that social media platform or where he does the main posting at this juncture. Uhm, and we'll see how that shifts leading up to, uh, November as well. But he does have an interest in making sure that Truth Social has or gets some type of legs.
SEANA SMITH: An invested interest in that, to say the least.
