Future Meta Platforms: 4 Red Flags
By NAZIA | 13/3/2023
Their ambitions to compete with Twitter show that Meta is desperate for expansion.
The suspension of Employee bonuses and price reductions for its VR headsets.
An additional round of layoffs would indicate short-term difficulties.
The price of Meta Platforms' (META -1.20%) stock has increased by almost 50% so far this year.
its low valuation and cost-cutting initiatives rather than the slow expansion of its advertising business.
The social media behemoth still appears to be undervalued, and analysts anticipate an 11% increase in earnings per share this year as a result of spending restraint and share repurchases.
its advertising business, update its algorithms to handle Apple's privacy changes on iOS, and counter ByteDance's TikTok with Reels.
Four warning signs point to a company that is still having trouble adjusting to this more competitive industry
Reels' bonus payments from Meta were suspended.a bonus program that offered monthly payments to creators who met specific watch and interaction goals.
These incentives, which were designed to help Reels catch up to TikTok.
making $2.2 billion in revenue in 2022, Meta's Reality Labs division reported an operating loss of $13.7 billion.
The segment alone decreased Meta's operating margin for the entire year by 12 percentage points.
to begin a second round of layoffs that could be as significant as the 13% personnel reduction it underwent in November.
Meta Platforms was not among the top 10 stocks, according to the Motley Fool Stock Adviser analysis team, that investors should purchase right now.
They believe that there are ten equities that are better buys right now.