Market News

In Another Win, Meta (NASDAQ:META) Beats FTC

Story Highlights

Meta can go ahead with the acquisition of the VR firm Within Unlimited. The U.S. District Court approved Meta’s deal.

Social media giant Meta Platforms (NASDAQ:META), which is heavily exposed to legal and regulatory headwinds, recently breathed a sigh of relief. According to Bloomberg, Meta received court approval to buy the VR (virtual reality) firm Within Unlimited, the maker of the popular fitness app, Supernatural. 

Earlier, the U.S. Federal Trade Commission, or FTC, tried to block Meta’s acquisition of Within Unlimited. The FTC Bureau of Competition Deputy Director John Newman said that Meta is “trying to buy its way to the top” and is not competing on merits. 

Per the Bloomberg report, the U.S. District Judge denied the FTC’s request for a preliminary injunction to block the transaction. However, the FTC can continue to block the deal with a separate lawsuit filed in the in-house administrative court, for which the trial is scheduled to begin soon. 

It’s worth highlighting that the legal and regulatory risks are not new to Meta. Our risk analysis tool shows that legal and regulatory risks represent about 21.3% of Meta’s total risks. Further, this percentage is higher than the sector average of 19.9%.

What’s the Prediction for Meta Stock?

Investors should note that Meta stock gained about 20.16% in after-hours of trade, thanks to the management’s solid outlook for 2023 and focus on reducing costs. (Read more: Meta Stock Is Getting Its Mojo Back.) 

However, the legal and regulatory challenges and competitive headwinds could continue to pressure Meta’s stock. Given the short-term challenges, Wall Street is cautiously optimistic about META stock. With 20 Buy, five Hold, and one Sell recommendations, Meta commands a Moderate Buy consensus rating on TipRanks. 

Meanwhile, analysts’ average price target of $157.92 implies 3.13% upside potential.


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