META Stock Faces Scrutiny Amid WhatsApp Security Concerns Raised by Elon Musk
Meta Platforms Inc. (META) shares are under pressure following allegations from whistleblowers questioning WhatsApp's end-to-end encryption claims. Tesla CEO Elon Musk amplified these concerns via social media, stating "WhatsApp is not secure" while promoting his own platform. The controversy emerges as Meta tests premium subscriptions across Instagram, Facebook, and WhatsApp—a potential revenue driver for the tech giant.
Plaintiffs from five countries allege Meta stores user communications with employee access, contradicting WhatsApp's privacy assurances. A company spokesperson has denied these claims, but legal proceedings in San Francisco could significantly impact META's valuation if proven true. Market analysts suggest sustained security concerns may erode user trust in Meta's ecosystem at a critical juncture for its monetization strategy.
