While Meta’s Facebook continues to be a big part of social media, analysts have pointed out how the app hasn’t been as popular as TikTok. Read More: Disney will win the Metaverse, says Amazon Exec… no duh The battle against TikTok Ross Sandler, a Barclays analyst, also cut his price target on Meta from $280 to $370, so it appears that many investors are losing faith in Meta. It’s not just Martin arguing this either, as analyst Brian White has also been cautious about investing in Meta. Reports also claim that Reels, seemingly Meta’s way of combating TikTok, isn’t making as much money as it should.
While Meta is expected to make $27.7 billion in revenue during its current quarter, that is down 6% from Martin’s previous prediction and it might get lower.Īs expected, rising costs are due to the various investments Meta has committed to the metaverse, which has reportedly slowed down some of its revenue. Needham analyst Laura Martin told investors to sell their Meta stocks and use them as “a source of funds,” according to a report from Barron’s. Recently, an analyst advised investors that the opposite will be true, urging them to sell their Meta stocks since the metaverse ruins the company. Bloomberg reports: At a company-wide virtual meeting Thursday, Zuckerberg explained that the historic stock drop was a result of Metas weak forecast for revenue in the current quarter. While Meta is leading the way for the metaverse, even working on various apps designed for the platform, many are starting to wonder if it will pay off in the end. Meta Chief Executive Officer Mark Zuckerberg rallied his employees to focus on video products, after they watched the stock lose a quarter of its value. The metaverse is still an unknown entity to manybut corporations are banking on it being the next internet.
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