Meta Platforms Inc saw a significant rise in its stock price, up 10.6% to $659.44, following a trade agreement between the US and China. The deal drastically reduces tariffs on goods from both countries, alleviating inflation worries and improving market stability. For Meta, despite its ban in mainland China, the company benefits from substantial ad revenue generated from Chinese advertisers targeting international consumers. This positive shift in trade relations is expected to enhance Meta's international income as it attracts more cross-border advertising budgets.
The deal, which slashes US tariffs on Chinese goods from 145% to 30% and Chinese tariffs on US goods from 125% to 10%, has boosted investor sentiment.
Meta generates significant advertising revenue from Chinese companies seeking to reach overseas consumers on platforms like Facebook and Instagram.
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