Meta to continue dealing with Apple’s privacy pinch, TikTok is heating up for now


July 28 (Reuters) – Stiff competition from TikTok and privacy changes from Apple Inc (AAPL.O) will remain a source of concern for Facebook owner Meta Platforms Inc (META.O) in the near term, techs said. Wall Street analysts.

At least 16 brokerages slashed their price targets on Meta after the company announced its first-ever quarterly revenue drop on Wednesday, underscoring the challenges facing U.S. businesses from a stronger dollar and concerns over an impending recession. Read more

The company’s shares were down about 6% at $159.8, putting the Whatsapp owner on track to lose about $30 billion in market value for the day.

Join now for FREE unlimited access to


Last year Meta’s valuation hit the trillion dollar mark and ended the year at over $900 billion.

Apple shook up the digital advertising industry by introducing new iPhone privacy controls last year, which made it more difficult for companies such as Meta and Snap Inc (SNAP.N) to target and measure ads on their apps.

That, coupled with TikTok’s aggressive growth, is heightening recession fears, analysts say.

“Difficult comps, macro and special effects are certainly short-term history, but competition from TikTok and changes from Apple iOS will both have a bigger impact than expected in 2022,” the authors said. JP Morgan analysts.

Reels, a short-form video product that Meta is increasingly inserting into user feeds to compete with TikTok, cannibalizes more profitable content and will be a short-term headwind before eventually boosting revenue, company executives said. company. Read more

Many analysts also expect Meta to return to stronger growth in 2023, but noted that the rapid start of its metaverse dream, as regulators clamp down on big tech companies, would set back its innovation plans.

Also weighing in on Meta’s shares, the US Federal Trade Commission sought a court order to stop the company from buying virtual reality content maker Within Unlimited. Read more

Join now for FREE unlimited access to


Reporting by Eva Mathews and Akash Sriram in Bengaluru; Editing by Shounak Dasgupta and Devika Syamnath

Our standards: The Thomson Reuters Trust Principles.


Comments are closed.