Trump’s Bold Declaration: Facebook Branded ‘Enemy of the People’ Sparks Controversy
Facebook is once again in the crosshairs of former President Donald Trump. Some traders on Wall Street are getting nervous.
Meta Platforms, Facebook’s owner (and one of the stars in the recent rally), fell about 4% Monday after Trump appeared on CNBC to call Facebook an “enemy of the people.”
Shares of Meta dropped 1.2% on Friday following a post by former President Trump on Truth Social where he referred to Facebook as “a true enemy of the people!”Meta shares fell 1.2% Friday after a post from Trump on Truth Social, where the former President called Facebook “a true enemy of the people!”
Since Trump began his attacks on Thursday, the market value of Meta has fallen by more than $60 billion.
Meta’s sell-off was not driven by significant news, except for the criticism of former and perhaps future presidents.
Gil Luria, an analyst with D.A. Davidson, told CNN. Facebook has been dragged into the political debate on many occasions, which is never good for them.
Trump shocked many by changing his mind about TikTok last week and opposing the TikTok Ban that Congress, including Republicans, called for.
Why? Trump claims that he would benefit from Facebook’s decision to ban TikTok, with whom he has had a history of conflict.
Before the US stock market opened, Trump stated on CNBC that he didn’t like that Facebook wouldn’t be as big without TikTok.
He also called Facebook an enemy of the people and many media outlets.
Facebook suspended Trump’s Facebook and Instagram accounts for two years following the January 6, 2021 Capitol Riot. Meta restored
Trump’s Facebook and Instagram accounts in February 2023.
Facebook is very dishonest. Trump stated that Facebook was bad for the country, particularly regarding elections.
Meta has yet to respond to our request for comment.
Investors have noticed Trump’s accusations. Meta’s shares dropped 5% at one point on Monday, their worst day since 2022.
Luria, the D.A. Davidson analyst, said Trump’s remarks raise concerns that Facebook will again be a target for Washington.
Luria stated, “When a presidential contender refers to the opposition as an enemy of people, it brings them right back into the middle of the discussion—a place they haven’t occupied for some time.”
Luria stated that if Trump is elected President, he will pressure Facebook to halt Meta from making acquisitions. The company’s prior acquisitions of Instagram and WhatsApp were crucial to its success.
Luria stated that if a company cannot afford to buy the next big thing, it will struggle in the market. A president can use the podium to sway voters’ opinions about a company’s appeal.
Trump is a very active user of social media.
US regulators approved a controversial merger involving Truth Social’s owner, Trump Media & Technology Group, and a blank check company. Trump could have an enormous stake in the new public company if shareholders vote to approve it later this month.
This week, the full House will vote on a measure that gives TikTok approximately five months to split from its Chinese parent company. This app will not be available in US App Stores.
Joe Biden, the President of the United States, has stated that he will sign into law any TikTok legislation passed by Congress.