Jefferies Analyst Debunks Trump's Assertion That Meta's Facebook Is 'Enemy Of The People': 'I'd Be Buying This Stock On This Weakness'

In a recent interview with CNBC’s "Squawk Box," a top analyst at Jefferies contradicted former President Donald Trump‘s view of Meta Platforms Inc‘s META Facebook as the “enemy of the people.”

What Happened: Despite Trump’s public criticism of Facebook, Jefferies’ Brent Thill believes that the company’s business could continue to thrive under a Trump presidency. Thill, who leads the firm’s tech sector, emphasized the significant economic value that Facebook’s advertising brings to small businesses, reported CNBC.

Trump’s comments, however, had an immediate impact on the market. Facebook’s parent company, Meta, experienced its most significant daily drop in nearly a year, with shares falling over 4% to $483.59.

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Thill acknowledged the potential headline and political risks but maintained that the value created for small businesses through advertising is too substantial to ignore. He also expressed optimism about the future of Facebook’s advertising business, predicting a 40 to 50% increase in incremental ad spend this year.

Despite the recent market downturn, Thill said, “I'd be buying this stock on this weakness' Even with the rough trading day, Meta is up about 37% just this year.”

Thill maintains a buy rating and a 12-month price target of $550 per share, implying a 14% gain from Monday’s close.

Why It Matters: This is not the first time Trump has made headlines for his comments about Facebook. In a recent statement, he opposed a potential TikTok ban, arguing that it would significantly boost Facebook’s business, a company he has previously accused of election fraud.

Trump’s stance on Facebook has evolved over time. After initially supporting a ban on TikTok, he reversed his position, identifying Meta Platforms as the real enemy. This shift in perspective has significant implications for the tech industry and the future of social media regulation.

Trump’s return to these platforms could have implications for his own social media venture, Truth Social, which is set to go public through a merger with Digital World Acquisition Corp. Trump has indicated that he does not plan to renew the social media exclusivity term with his social media firm, a move that could potentially impact his own company.

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