Headwinds Will Slow Growth for Meta; Should Investors Sell Now?

Meta Platforms (NASDAQ: META) held an internal conference on June 30, during which CEO Mark Zuckerberg told employees to brace for impact. The social media giant that has turned into a metaverse business has, for several quarters, warned investors that it faces headwinds that are hurting its ability to grow revenue.

Those include changes from Apple (NASDAQ: AAPL) that make it more difficult for Meta to track its users across apps. Rising competition from short-form video site TikTok has also forced Meta to make adjustments, hurting sales in the near term. Let's look at the recent revelation and determine if investors should jump ship and sell the stock now.

One of the significant insights from reports of the meeting was Meta's reduced plans for hiring. The company had initially planned to hire 10,000 engineers. It has now reduced that goal to between 6,000 and 7,000. And the company is increasing performance goals, making work more challenging for existing staff.

Source Fool.com