In a rather surprising move, Meta (META) has opted to drop its fact-checking feature in what many view as a decision made to favor the incoming Donald Trump administration. Indeed, the company has reportedly scrapped its current moderation platform in favor of an alternative model.
The social media company also opted to limit “cubs on discussions around contentious topics such as immigration and identity,” according to a Reuters report. The decision seemingly gives in to criticism that Trump has made of the platform. Moreover, it could have notable stock implications ahead of the returning president’s inauguration.
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Zuckerberg Concedes to Trump Criticism, Shelves Fact-Checking Program
In November of 2024, the American people voted rather convincingly to once again elect Donald Trump as President. Despite the overwhelming victory, there is still some contention regarding his position and how companies operate in connection with him, and his plan will undoubtedly have ramifications. The question is, will they be positive or negative?
In a rather surprising development, Mark Zuckerberg is the latest to alight with the US President-elect’s view. Indeed, META has opted to do away with its fact-checking model in a Trump alignment move that could have major stock ramifications. Specifically, on Facebook, Instagram, and Threads, more than 3 billion users will now operate with a community note model similar to Elon Musk’s X (formerly Twitter).
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“We’ve reached a point where it’s just too many mistakes and too much censorship,” Zuckerberg said. “It’s time to get back to our roots around free expression.” The recent development follows a stark shakeup at the company. Both Republican policy executive Joel Kaplan and Trump advocate Dana White have taken on notable leadership positions. The former was elevated to global affairs head, and the latter joined the company board.
At his most recent appearance, Trump was asked if the decision was a response to “the threats that you’ve made to [Zuckerberg] in the past.” Trump answered with a succinct “probably,” adding that he thinks the platform has “come a long way; Meta, Facebook.”
Trump had previously threatened to put the Meta CEO in prison for life. For many, those kinds of threats have driven the ongoing reversal that the platform has taken. Moreover, these decisions have come less than two weeks before Trump is set to be inaugurated.
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Now the most pressing question facing Wall Street is, What does this shift mean for META’s stock? It is certainly hard to tell currently. Elon Musk is the first true test of individuals who shifted to align closely with the incoming president.
Early on, that alignment served Musk well. Tesla (TSLA) surged to record prices and was elevated with the belief that its optimistic plans would be befitted from his position close to Trump. However, Zuckerberg has not yet had that same connection. Moreover, it is hard to believe he would have the same benefit.
Only time will tell how the stock is affected in 2025, but the firm was down 2.6% on insider selling early Tuesday. It is clear that the platform is looking to shift in a way that more aligns with X. Whether that affects its shares or threatens their success over the last 12 months remains to be seen.
