Social media operator Meta Platforms (META) is bolstering its relationship with President-elect Donald Trump with a $1 million donation to his inaugural fund. Mark Zuckerberg, founder and CEO of Meta Platforms, has been working to improve relations with Trump after a rocky feud in 2020 that started over a $400 million donation to improve election infrastructure. Zuckerberg claims this was only done to help with elections during the pandemic but Trump saw it as election interference.
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Since then, relations between the Meta Platforms CEO and the incoming President have improved. This is because Zuckerberg is actively warming up to Republicans, including sharing some of his more conservative views publicly. The $1 million donation also marks the first time Meta Platforms has contributed to an inaugural fund for Trump or Biden.
What This Means for META Stock
Heading into the 2024 presidential election, Trump expressed strong views against Meta Platform’s Facebook, even calling it the “enemy of the people.” He also promised to go after election fraudsters, calling out Zuckerberg directly in a post on Truth Social (DJT). However, a lot has changed since then with Zuckerberg attending a dinner with Trump in November.
These meetings, alongside Meta Platform’s $1 million donation, are positive signs for the company’s stock. If Zuckerberg can maintain a good relationship with Trump during his term, it could assist Facebook in avoiding regulatory trouble over the next four years.
Zuckerberg’s efforts may also help Facebook better compete against Elon Musk’s X, formerly Twitter. X has become a homestead for conservatives after Musk bought it in 2022. On top of that, the X owner is tapped to lead Trump’s planned Department of Government Efficiency (DOGE). Appealing to conservatives has worked for Musk and X, and Zuckerberg likely hopes the same will happen with Facebook. If it does, META may stock climb higher during Trump’s presidential term.
Is META Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Meta Platforms is Strong Buy based on 40 Buy, three Hold, and one Sell ratings over the last three months. With that comes an average price target of $663.13, a high of $811, and a low of $530. This represents a potential 4.81% upside for META shares.
