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META
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127 days

Meta resorted to 'buy-or-bury scheme' with Instagram and WhatsApp deals, former FTC Chair Lina Khan says

1. Meta's trial with the FTC begins today regarding monopoly allegations. 2. Khan claims Meta resorted to acquisitions to eliminate competition. 3. Trial could lead to divestment of Instagram and WhatsApp. 4. Meta argues it does not hold a monopoly over social networking. 5. Outcome could reshape the entire social networking ecosystem.

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FAQ

Why Bearish?

The potential divestment of Instagram and WhatsApp poses immediate risks to Meta's valuation, resembling past antitrust scrutiny impacting large tech firms.

How important is it?

The ongoing legal battle directly impacts Meta's core business structure and financial outlook, significantly influencing investor sentiment and market response.

Why Short Term?

The trial's outcome and potential divestitures could negatively affect Meta's stock in the near future, similar to historical cases of antitrust lawsuits altering market perception rapidly.

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