Meta Stock ( NASDAQ:META )
In premarket trading on Friday, Meta Platforms ( NASDAQ:META ) stock fell by around 1.5% due to an investment company citing potential concerns, including greater competition, as the reason for its downgrading of the technology giant.
Meta stock was downgraded to “reduce” from “hold” by analyst Nicolas Cote-Colisson , who cites the risk of global economic slowdown and rising competition and regulation as near-term dangers to the business.
Cote-Colisson also said that it is anticipated that the growth of the GDP would decrease by 1.4% in 2024, which will have an effect on “nearly all” of the company’s income as well as all of the company’s earnings because they are directly tied to the digital advertising market.
In a letter to clients, Cote-Colisson said, “Comments on the investor call comforted on the progress achieved on short-form video with Reels (increasing engagement), but we still expect intense competition – including TikTok – and under-monetization compared to Facebook continuing into 2023.”
Recently, Senator Michael Bennet sent a letter to the CEOs of Apple and Google, requesting that they remove the TikTok app from their respective app stores.
This past week, Meta released its financial results for the fourth quarter, which led to a significant increase in the price of the company’s shares. This rise was partly attributable to the company’s ongoing success with developing its Reels product.
Even though the firm had success this week when a federal court ordered that it may purchase virtual realit...
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