One of the more useful functions of Meta Platforms‘s (NASDAQ: META) core Facebook site is its messaging service. So it wasn’t surprising that the company’s share price fell on news that its messaging will no longer be available as a stand-alone app in a top mobile marketplace in China. Meta’s stock closed Friday more than 4% down in price, which was a far steeper tumble than the 0.9% drop of the S&P 500 index.
Facebook Messenger removed from App Store in China
Before market open, The Wall Street Journal reported that a clutch of popular messaging apps were removed from Apple‘s App Store that day. This included Facebook Messenger, plus Telegram and Signal. The iPhone maker said this was done by request, with rather vague “national security concerns” cited as the reason.
The Journal quoted an unnamed Apple spokesperson as saying that “We are obligated to follow the laws in the countries where we operate, even when we disagree.”
Facebook Messenger, Telegram, and Signal are inaccessible behind the so-called Great Firewall erected by the Chinese government. However, it is common for people in the country to find ways around such restrictions, and messaging apps are popular. The country’s authorities have historically been suspicious of these apps, as they consider them to be conduits of material unfavorable or even threatening to the government.
There is always a way
The removal of Facebook Messenger doesn’t necessarily mean the removal of Facebook from Chinese society. As they always do, users in the massive Asian country will find a way to connect with social media, and if they have Facebook accounts, they’ll probably continue to use them in some fashion — even without Messenger. I don’t think the sudden App Store ban is much of a threat to Meta’s business.
Should you invest $1,000 in Meta Platforms right now?
Before you buy stock in Meta Platforms, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $518,784!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of April 15, 2024
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Eric Volkman has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.
Why Meta Platforms Stock Flopped on Friday was originally published by The Motley Fool
