Meta Platforms Inc to Halt Political Ads in EU Amid Regulatory Changes, Analysts Predict 4.50% Upside for Shares

Meta Platforms (META) plans to halt political and social issue ads in the EU from October, citing EU's "Transparency and Targeting of Political Advertising" regulation. Analysts predict a potential upside of 4.50% with a target price of $747.30 for META shares, but GuruFocus estimates indicate a potential downside based on GF Value. The average brokerage recommendation is 1.8, reflecting an "Outperform" status.

Meta Platforms (META), the parent company of Facebook and Instagram, has announced plans to cease political and social issue advertising in the European Union (EU) starting from early October 2025. This decision is a response to the EU's Transparency and Targeting of Political Advertising (TTPA) regulation, which introduces significant operational challenges and legal uncertainties [1].

The TTPA regulation, set to come into effect on October 10, requires platforms to label political advertisements clearly, disclose who paid for them, and specify the targeted elections. Failure to comply could result in fines up to 6 percent of annual turnover [2]. Meta's decision to halt such ads is a result of the complexity and legal uncertainty created by the regulation, making it difficult to ensure compliance [1].

Despite extensive engagement with policymakers, Meta has been left with an impossible choice: alter its services to offer an advertising product that doesn't work for advertisers or users, without guarantee of compliance, or stop allowing political, electoral, and social issue ads in the EU [1]. This decision is specific to the EU and will not prevent people from debating politics on Meta's platforms organically.

Analysts have reacted to this announcement with a mix of predictions. Bernstein's analyst, Mark Shmulik, has increased the price target for Meta Platforms from $700 to $775, maintaining an Outperform recommendation. The average target price for META shares, based on 61 analysts, is $742.22, with a high estimate of $935.00 and a low estimate of $525.00 [4]. The consensus brokerage recommendation is 1.8, reflecting an "Outperform" status [4].

However, GuruFocus estimates suggest a potential downside based on the GF Value, indicating a possible downside of 23.66% from the current price of $712.97 [4]. This discrepancy highlights the varied opinions among financial professionals regarding the impact of the EU regulation on Meta's stock performance.

Meta's decision underscores the broader pushback from Big Tech companies against EU rules aimed at reining in their power and ensuring transparency and accountability [2]. The EU probe under the Digital Services Act, investigating Meta's handling of disinformation and deceptive advertising, adds to the regulatory pressure [2].

In conclusion, Meta's halt on political and social issue ads in the EU is a significant response to the TTPA regulation. While analysts predict a potential upside for META shares, the impact on the company's stock remains uncertain. The regulatory environment in the EU continues to evolve, with potential implications for other digital advertising platforms as well.

References:
[1] https://about.fb.com/news/2025/07/ending-political-electoral-and-social-issue-advertising-in-the-eu/
[2] https://bdnews24.com/technology/d171b492be0d
[3] https://fakti.bg/en/world/988738-european-regulations-meta-stops-political-advertising-on-facebook-instagram-and-whatsapp-in-the-eu-from-autumn
[4] https://www.gurufocus.com/news/2992730/bernstein-analyst-boosts-price-target-for-meta-platforms-meta-meta-stock-news