2 reasons why Meta Platforms stock is down sharply today
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.
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.
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
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