Why Meta Platforms Stock Is Sinking Today

Meta Platforms (NASDAQ: META) stock is getting hit with substantial sell-offs in Thursday's trading. The company's share price was down 4.3% as of 2:30 p.m. ET.

At the same point in the day's trading, the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) were down 1.2% and 1.7%, respectively. Meta's stock had been off as much as 5.3% earlier in the day.

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Despite some better-than-expected inflation data released in the last two days, investors are selling out of stocks again today in response to trade-war fears. Meta Platforms stock is also seeing a pullback in conjunction with news about its content-moderation policies and a recently published memoir from a former employee.

Meta Platforms stock sinks on trade-war concerns

Following yesterday's lower-than-anticipated Consumer Price Index (CPI) inflation report, today's Producer Price Index (PPI) report arrived with annual inflation of 3.2% -- below the consensus forecast's call for inflation of 3.3%. But concerns about the impacts of new tariffs and the potential for continued trade-war escalation are still causing investors to sell out of stocks today.

The S&P 500 is now down roughly 6% across 2025's trading, and the Nasdaq Composite is off 10%. Despite today's sell-off, Meta Platforms stock is still up 1% year to date.

What else is dragging Meta lower today?

In addition to bearish momentum for the broader market, Meta stock is seeing sell-offs in conjunction with two other news stories today. For starters, investors don't seem to be thrilled with the confirmation that Meta will be implementing the same open-source algorithm that X uses for its community-notes feature.

Reports have also emerged that Meta has sued to stop former employee Sarah Wynn-Williams from selling her recently published memoir. Wynn-Williams' book, Careless People, includes critical depictions of Meta's company culture and CEO Mark Zuckerberg's efforts to expand his company's operations in the Chinese market.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.