Dan Ives, Wedbush Managing Director Dan Ives says Meta META could be bracing for a tornado-like quarter.
The social media giant is scaling back its hiring plans as it prepares for an economic downturn. This week, Meta's founder and CEO Mark Zuckerberg said that the company would cut back its hiring target for this year by at least 30%.
If you had to bet, I'd say that this might be one of the worst downturns we've seen in recent history, Zuckerberg told employees during a weekly Q&A session that was recorded and heard by Reuters.
After Apple implemented privacy changes to its operating platform, Meta's revenue growth slowed, making it harder for advertisers to target users.
There is some pain ahead, according to the analyst, noting the pivotal role of the social media giant in developing the metaverse, or next generation of the Internet.
You can rename the company Meta but it is still not until 3 -- 5 years out in terms of revenue perspective. This is really bracing for a tornado-like quarter. The meta stock is down more than 50% year-to-date.