Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
👀 Bezos, Buffett & Berkowitz: What's in Their Portfolios? Unlock Data
Analysts Upgrade Meta as Market is Pricing in an 'Extreme Bearish Scenario'
Published Nov 07, 2022 08:37AM ET
Updated Nov 07, 2022 08:44AM ET
© Reuters Analyst Upgrades Meta (META) as Market is Pricing in an 'Extreme Bearish Scenario'
By Senad Karaahmetovic
Meta Platforms (NASDAQ:META) shares are up over 3% in pre-open Monday after analysts weighed in positively on the company’s plans to cut its operating expenses.
The Wall Street Journal reported over the weekend that Meta is planning to reduce its workforce this weak. The cut is expected to affect “many thousands” of workers, a piece of news that “isn’t completely shocking,” according to VitalKnowledge analysts.
Analysts have called for Meta to cuts its operating expenses by a couple of billion on an annual basis to balance the slowing growth.
Meta shares are down more than 30% in the last weeks following the company’s disappointing earnings. For Itau BBA analysts, the selloff has created an attractive buying opportunity in Meta shares.
“While we have been bearish on the story for more than a year, we believe that the current price reflects an extremely bearish scenario, making it worth at least a small position (maybe medium size),” they said in a client note.
“The right price has finally come,” the analysts added after being very negative on Meta stock.
“We believe that META is finally pricing in an extreme bearish scenario, in which: i) META will sustain an insane level of cash spend (capex + opex); and ii) revenues will remain depressed, given a potential disruption (from Apple, TikTok, or META’s own faulty execution).”
Overall, Meta shares remain down over 30% year-to-end.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.