Strong competition from TikTok and Apple’s privacy changes will continue to be a matter of concern for Meta, which owns Facebook, in the short term, Wall Street analysts said.
At least 10 brokerages cut their target prices for Meta’s share after the company reported its first quarterly revenue drop, highlighting challenges facing US companies with a stronger dollar, as well as concerns about a recession.
Apple revolutionized the digital ad industry by introducing new iPhone privacy controls last year, undermining the ability of companies like Meta and Snap to target and measure ads in their apps, along with the growth of TikTok, which is exacerbating fears. recession, according to analysts.
“Big competition, macro and currency are certainly a part of the short term, but competition from TikTok and changes to Apple’s iOS will have a bigger impact than expected in 2022,” analysts at JPMorgan said.
Many analysts also expect Meta could return to stronger growth in 2023, but have noted the faltering start to its metaverse project as regulators clamp down on big tech companies, delaying their innovation plans.
It also weighs on Meta’s actions, the US Federal Trade Commission’s lawsuit seeking a court order to stop the company from buying virtual reality content producer Within.
Source: CNN Brasil
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