3 Reasons to Avoid Meta Platforms Stock
In June 2021, Facebook gained a brief boost by changing its name to Meta Platforms (NASDAQ: META), as Mark Zuckerberg saw the future in virtual worlds. However, reality didn't take long to intrude into Zuckerberg's fantasies, and the stock dropped close to 58% from its all-time high of $384.33, reached in September 2021. But if you think Meta is now a bargain, think again. Here are three reasons to stay away from Meta Platforms.
Zuckerberg said two things on Meta's first-quarter 2022 earnings call that disappointed investors. First, he noted that monetizing the company's short-form video efforts would take time. Second, he talked about how Apple's iOS changes had become a meaningful headwind to the ad business.
In the second quarter, Zuckerberg greeted Meta investors with even worse news when he said that the economy is already in a downturn, hurting its ad business. And you can see proof of the falloff by looking at its average price per ad, which declined by 14% year over year during the quarter.
Source Fool.com
