Is the Heyday of Social Media Over?
Following disappointing third-quarter advertising earnings results from $Snap Inc(SNAP)$ and $Alphabet(GOOG)$'s YouTube, $Meta Platforms, Inc.(META)$is the latest victim as advertisers withhold their spendings on the back of slowing demands amidst a deteriorating economy.
Apple’s previous move to restrict apps in their abilities to evaluate successes of online advertising has a devastating impact on social media platforms, especially Facebook. Emerging competitions from the likes of TikTok are also giving META a hard run for its money.
Hence, it is not surprising to me that the latest earnings announcement by the parent of Facebook after market close fell short of Wall Street’s expectations. Adding to its woes, its weak business outlook for the next quarter further dampened investors’ confidence.
The second consecutive quarterly poor results and forecast of another revenue decline in the current quarter sent META’s stock into yet another free fall this year, as the share price plummeted nearly 20% during the extended trading hours.
Its share price has already crashed almost 62% so far this year, before its latest earnings announcement. Shareholders of META will need to brace themselves as the share price is expected to plunge when regular trading session commences tonight.
META has to innovate and reinvent itself in the metaverse space in order to stay relevant post pandemic and move ahead of competition amidst prevailing macro headwinds. Until the social media platform is able to demonstrate renewed growth and restore market confidence, I would stay away from its stock.
@TigerEvents @TigerStars @TigerWire @MillionaireTiger @CaptainTiger
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Hi
Ok