2 Red Flags for Meta Platforms' Future
Meta Platforms (NASDAQ: META) faces substantial headwinds that are hurting its prospects. Consumers are once again changing the way they interact with social media apps. The change is forcing Meta Platforms to adapt, which may or may not work out in the longer run. Moreover, Apple (NASDAQ: AAPL) has made changes to its platform, making it harder for Meta Platforms to collect data on users. That reduces a lucrative source of revenue from showing targeted advertisements.
Partly because of these headwinds, Meta's stock is down 58% off its highs. Let's look at these red flags in more detail to determine what they could mean for investors.
When Facebook started 18 years ago, people mainly communicated on the platform through text-based posts, replies, and messages. As the technology of mobile phones improved, including better cameras, posts shifted heavily in favor of photos. Most recently, the enhancement of internet speeds has again changed how people post and what people consume on social media. The short-form video has jumped in popularity. On two of Meta's social media apps, Instagram and Facebook, short-form videos make up 20% and 50%, respectively, of the time people spend on the platforms, respectively.
Source Fool.com
