Will The FTC Destroy The Meta Empire… Or Is This Your Chance To Buy the Dip?

The stock market has been anything but calm.

After weeks of volatility driven by Trump’s new tariffs, investors finally caught a break: a temporary exemption on electronics including smartphones and chips sparked a short-lived rally. But make no mistake, major indexes are still below their 2025 highs, and the market remains on edge.

And now, Meta is back in the spotlight.

This week, the company is heading to trial in a landmark antitrust case. The Federal Trade Commission (FTC) is seeking to force Meta to spin off Instagram and WhatsApp, arguing that it’s been abusing its monopoly power in social networking.

This isn’t just another headline—it could reshape Meta’s entire business model.

So… is Meta’s empire at risk? Or is this just a bump in the road—and a buying opportunity for long-term investors?

This is where the Invest Diva Diamond Analysis (IDDA) comes in.

The IDDA breaks down investing into 5 simple, powerful steps:

• Capital Analysis – Understand your personal risk tolerance.
• Intentional Analysis – Make sure the asset aligns with your financial goals and timeline.
• Fundamental Analysis – Dig into the company’s financial and business performance.
• Sentimental Analysis – Consider what the market is feeling and reacting to.
• Technical Analysis – Use charts to identify smart entry and exit points.

In this post, we’ll analyze what’s really going on with Meta—and whether this trial is a threat to your portfolio or an opportunity in disguise.
Let’s dive in.

IDDA Point 1&2- Capital & Intentional

The capital and intentional analysis need to be conducted by you.

Select your assets in alignment with your financial goals. Listen to your intuition about each asset, but remember to invest based on your own values, not just because of recommendations from others.

IDDA POINT 3 – FUNDAMENTAL

Meta remains one of the strongest players in the tech world—but this antitrust trial could test the strength of its foundation.

Solid Financials
Meta posted strong Q4 2024 results, with revenue up 25% year-over-year, largely driven by advertising and improved monetization across Reels, WhatsApp, and Instagram. Net income surged to over $14 billion, showing the company’s ability to scale profitably—even in turbulent times.

Instagram & WhatsApp Still Crushing It
These two platforms are at the heart of the FTC lawsuit—but they also make up a huge chunk of Meta’s long-term growth.
Instagram continues to dominate with Gen Z and younger millennials, while WhatsApp has become essential infrastructure in many regions. Their integration into Meta’s broader ad and data systems is one of its biggest strengths—and the exact reason regulators want them separated.

AI & Metaverse Bets
Meta has invested billions into AI tools for advertisers and its Reality Labs division (Metaverse and AR/VR). While the Metaverse hasn’t paid off yet, Meta’s focus on generative AI—especially for content creation and ad optimization—positions it well for future growth.

Expenses Under Control
Meta has aggressively cut costs over the past two years, trimming its workforce and streamlining operations. The result? Higher margins and improved investor confidence. In fact, its Q1 2025 earnings are expected to show further improvements in profitability.

Despite legal noise, Meta’s fundamentals remain strong. It generates massive cash flow, has multiple monetization engines, and is well-diversified across platforms. The risk lies in regulation—not in the core business model. Long-term investors should watch how the trial plays out, but Meta is not financially shaken.

IDDA POINT 4 – SENTIMENTAL

Market sentiment around Meta remains surprisingly resilient—even with the FTC trial hanging over its head.

The stock has rebounded from its March lows, thanks in part to President Trump’s decision to temporarily pause tariffs on smartphones and other electronics. This relief sparked a rally across tech stocks, including Meta.

Many investors view the FTC case as background noise rather than a true threat. Meta’s strong Q4 performance and continued innovation in AI and monetization are helping maintain confidence.

CEO Mark Zuckerberg has remained mostly quiet on the FTC trial, but Meta’s recent moves—including investments in AI, creator monetization, and immersive experiences—signal that the company is focused on growth, not legal distractions.

On platforms like Seeking Alpha and Tradingview, retail sentiment is largely bullish, with many analysts arguing that Meta is undervalued given its cash flow, earnings strength, and AI potential.

That said, regulatory pressure is real. If the FTC succeeds in forcing Meta to divest Instagram or WhatsApp, it would drastically reshape the company’s business model. So while most investors aren’t panicking, this case isn’t being ignored either.

The overall mood is bullish, but the uncertainty around the FTC trial keeps risk elevated. Watch how headlines evolve—any shift in legal momentum could trigger sharp moves.

IDDA POINT 5 – TECHNICAL

Weekly Chart (Medium-Term Outlook)

On the weekly timeframe, we’re still seeing bullish trend overall:

🟢 The Ichimoku future cloud is green, signaling upward momentum and acting as a support zone.
🟡 However, the conversion line (Tenkan) is attempting to cross below the baseline (Kijun)—a formation known as a dead cross, which is a bearish signal.
🟡 RSI is at 40, which shows the stock is not oversold yet—there’s room for further downside before reaching reversal levels.

Buy Limit (BL) Levels

If price dips, these are potential zones to watch for entries based on technical support:

• $506.66 (high-risk)
• $483.69 (medium-risk)
• $453.68 (low-risk)

• While the overall trend remains intact, the potential dead cross and RSI in neutral territory suggest that short-term consolidation or a pullback could occur before a bounce.

Here are the Invest Diva ‘Confidence Compass’ questions to ask yourself before buying at each level:

1. If I buy at this price and the price drops by another 50%, how would I feel? Would I panic, or would I buy more to dollar-cost average at lower prices? (hint: this question also reveals your CONFIDENCE in the asset you’re planning to invest in).
   
2. If I don’t buy at this price and the stock suddenly turns around and starts going up again, will I beat myself up for not having bought at this level?
   

Remember: Investing is personal, and what is right for me might not be right for you. Always do your own due diligence. You should ONLY invest based on your own risk tolerance and your timeframe for reaching your portfolio goals

Summary: Final Thoughts

Meta’s antitrust trial is serious—but it’s not shaking investor confidence just yet.

Fundamentally, Meta is solid. Strong profits, growing revenue, and aggressive investments in AI keep it positioned for long-term growth.

Sentiment-wise, most investors remain bullish. The stock has rebounded from March lows, and many see the FTC case as a headline risk—not a structural threat.

If you’re a long-term investor with moderate to high risk tolerance, this could be a smart opportunity to buy the dip.

📌 Recommendation: Buy on dips or hold

Make sure it aligns with your goals—and remember, investing is personal.

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If you enjoyed my blog post about Meta, you’ll love my post Will Apple Weather the US-China Trade War… or Pay the Price?.

Disclosure: I am not a financial advisor, and this is not financial advice. This information is for educational purposes only. This post Will the FTC Destroy Meta’s Empire… or Is This Your Chance to Buy the Dip? may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please see the terms of service page for more information.