Future Meta Platforms: 4 Red Flags 

By NAZIA | 13/3/2023

Meta Desires to imitate Twitter.

Their ambitions to compete with Twitter show that Meta is desperate for expansion. 

Meta Desires to imitate Twitter.

The suspension of Employee bonuses and price reductions for its VR headsets.

Short term difficulties 

An additional round of layoffs would indicate short-term difficulties.

The king of social media still has a lot to show. 

The price of Meta Platforms' (META -1.20%) stock has increased by almost 50% so far this year. 

A result of investors' attentions  

its low valuation and cost-cutting initiatives rather than the slow expansion of its advertising business. 

At 19 times projected earnings 

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.

Meta must first stabilize  

its advertising business, update its algorithms to handle Apple's privacy changes on iOS, and counter ByteDance's TikTok with Reels. 

Meta will be able to check all those boxes in 2023 

Four warning signs point to a company that is still having trouble adjusting to this more competitive industry 

Bonus program suspended  

Reels' bonus payments from Meta were suspended.a bonus program that offered monthly payments to creators who met specific watch and interaction goals. 

First introduced by Meta in December 2021 

These incentives, which were designed to help Reels catch up to TikTok. 

VR headset prices are about to drop. 

making $2.2 billion in revenue in 2022, Meta's Reality Labs division reported an operating loss of $13.7 billion. 

What is the entire percentage? 

The segment alone decreased Meta's operating margin for the entire year by 12 percentage points. 

 Meta plans

to begin a second round of layoffs that could be as significant as the 13% personnel reduction it underwent in November. 

$1,000 investment in Meta Platforms right away? 

Meta Platforms was not among the top 10 stocks, according to the Motley Fool Stock Adviser analysis team, that investors should purchase right now.

Investor believe 

They believe that there are ten equities that are better buys right now.