Meta Platforms’s shares slip as Needham downgrades the company
July 12, 2022
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Meta Platforms ($NASDAQ:META) shares slipped on Monday as investment firm Needham downgraded the tech giant, noting concerns over “deteriorating” fundamentals and structural risks to its valuation. “We are downgrading FB to UNDERPERFORM as we see deteriorating fundamentals and structural risks to the stock’s valuation,” Martin wrote. “We think FB is a great company, but not a great stock at current levels,” Martin said. Do you think this will affect Meta Platforms market and earnings in the long term? The downgrade from Needham comes as Meta Platforms faces a number of headwinds, including concerns about its handling of user data, slower user growth, and regulatory scrutiny. In the short term, the stock may continue to be volatile as investors react to news about these issues. In the long term, it remains to be seen how these challenges will affect Meta Platforms’s business and earnings.
Market Reaction
So far, the sentiment of news stories about the company has been mostly positive. However, there is some negative sentiment as well. The company will need to continue to monitor the sentiment of news stories to ensure that it remains positive.
VI Analysis
Company’s fundamentals are a good reflection of its long term potential. The below analysis on Meta Platforms is made simple by VI app. Based on VI Risk Rating, Meta Platforms is a low risk investment in terms of financial and business aspects. However, there are some potential risks in the business and financial areas which you may check out in our website.
Summary
The analyst firm cited slowing growth and increased regulation as reasons for the downgrade. Despite this news, there are still many reasons to invest in Meta Platforms. It also has a strong position in the digital advertising market. In addition, Meta Platforms is continuing to grow its revenue and profit. Looking forward, Meta Platforms is well positioned to continue growing. The company is investing in new areas such as virtual reality and artificial intelligence. It is also expanding its reach into developing markets.
