Meta Gears Up For In-App Ads and Defends in Antitrust Case

Meta Platforms (NASDAQ: META), formerly known as Facebook, is taking significant strides in both expanding its revenue streams and defending its business practices on the legal stage. Two major developments are at the forefront: the introduction of advertisements on its Threads platform and an ongoing antitrust case challenging the company's acquisition of Instagram and WhatsApp.

The tech giant is gearing up to monetise Threads, Meta's messaging platform, by displaying ads to its users. With the new roll-out expected in early 2025, initially, this will be managed by a small specialized team from Instagram's advertising unit. This move capitalizes on Thread's success in attracting an active user base of 275 million as of October. Launched as a competitor to platforms like Twitter, this initiative represents Meta's drive to harness new income avenues and strengthen its foothold in the competitive social media landscape..

On the legal side, Meta is currently entangled in an antitrust court trial, spearheaded by the Federal Trade Commission (FTC). The regulatory body has accused Meta of engaging in monopolistic operations and hindering fair competition through its acquisitions of Instagram and WhatsApp. Judge James Boasberg recently denied Meta's attempt to dismiss the case, meaning the company cannot use the argument that these acquisitions have bolstered its competitive position against heavyweights such as Apple and Google. Despite this setback, Meta is confident and stands firm, asserting that its acquisitions have not only spurred competition but have also been beneficial to consumers.

Meta's resilience in the face of these challenges is reflected in Wall Street's confidence. Analysts have given Meta stock a Buy consensus rating, seeing significant potential for growth from its current levels. This positive sentiment is backed by the performance of META stock, which has performed strongly through 2024 in adding 67.49%.

Meta Platforms finds itself at a crossroads. On one hand, it is exploring innovative ways to drive revenue growth, such as the introduction of advertisements on Threads. On the other hand, it is preparing to navigate the tumultuous waters of antitrust litigation—an effort to justify and protect its expansion strategy. Investors and industry observers alike are keenly watching to see how these efforts play out, both for the company's balance sheet and its standing in the digital marketplace.