Why Trump’s prices even serve Meta

When President Trump announced sweeping prices this week, some of the largest technological companies had obvious reasons to worry.

Apple, Dell and Oracle – which are based on the world’s equipment and supply chains which are in the direct level of the prices – have seen their actions enter free fall. But there was another large technological company whose stock took a boost even if its main activity has little to do with the equipment: Meta.

The actions of the company, which holds Facebook, Instagram and WhatsApp, dropped from $ 52 to $ 531.62 on Thursday and were down again on Friday. In total, Meta lost 9% of its market capitalization Thursday.

The reasons for Meta’s slide are less obvious. But observers close to social networks and Metaversse Company know that he is just as vulnerable to Mr. Trump’s commercial actions as some of his peers from Silicon Valley, even if the details are more complicated. Here is why.

What gives Meta? It is not in the same material companies as Apple or Nvidia.

This is not entirely true, but for our ends, let’s examine Meta’s main activities: digital advertising.

Meta rans up in billions of dollars in income by selling announcements on Facebook and Instagram. Some of these advertisers are big brands, including Procter & Gamble, L’Oréal, McDonald’s and Nestlé. These companies buy Facebook advertisements for so -called brand awareness campaigns. Consider it as a way to push people to buy a specific product like Q-Tips instead of generic cotton cotton the cottons the next time they will go to the store.