The market continues to pummelMeta ($META), with the most recent hit coming from the European Union (EU). Regulators in the EU, citing EU privacy laws, have allegedly ruled that users don’t have to agree to personalized ads based on their activity. 📝
A public ruling hasn’t been published yet, but the market is trading down based on its potential impact. That’s because analysts and investors fear the EU may create more roadblocks in Meta’s ability to use targeted ads, which are a key part of its business.
The new rules would only allow Meta to run advertising based on personal data with users’ explicit consent. Right now, it’s buried in the terms and conditions, making it difficult for users to opt out if they want to. And since user activity is a key metric used for targeting advertising, losing that data would weaken Meta’s advertising offering in the marketplace. 👎
These are rumors for now, but given the EU’s recent track record against global tech giants…investors are rightfully concerned. 😨
Meta shares gapped down and trended lower throughout the day. They also took other tech companies who rely on advertising lower with them, including Google, Snap, and Pinterest. 📉