Tariffs on Chinese goods may impact Meta Platforms' growth due to ad revenue

From Nasdaq: 2025-04-25 03:37:00

PDD launched Temu as a cross-border marketplace in 2022, allowing Chinese merchants to sell goods directly to overseas buyers. By the end of 2024, Temu had 292 million monthly active users worldwide, with 185.6 million in the U.S., making it the most downloaded shopping app on iOS and Android.

However, Temu’s growth could face challenges due to increased tariffs on Chinese goods and changes to customs duties. This could impact PDD’s efforts to diversify its business away from China and compete with e-commerce leaders like Amazon. Meta Platforms, which benefited from Temu’s ad spending, could also feel the effects.

Despite challenges, Meta Platforms experienced a stock rally and revenue growth from China. Temu was a significant advertiser on Meta’s platforms, with Chinese companies increasing ad purchases to reach overseas customers. However, potential trade tensions could impact Meta’s revenue from Chinese advertisers like Temu.

Investors should consider how rising tariffs and trade tensions could affect Meta Platforms, which relies heavily on revenue from ads, including from Chinese companies like Temu. While Meta has shown resilience and growth, uncertainties in the global market could impact its future performance.

Consider the potential risks and opportunities before investing in Meta Platforms, as trade tensions and other factors could impact its revenue and growth prospects. The Motley Fool’s analyst team has identified 10 stocks for investors to consider, highlighting potential opportunities for significant returns. Join Stock Advisor to access the latest recommendations and insights.



Read more at Nasdaq: Temu’s Tariff Troubles Could Throttle Meta’s Growth