Now Down Almost 50%, Will Meta Platforms Rebound Anytime Soon?
Meta Platforms (NASDAQ: FB) surely hasn't had the ideal start to 2022. In early February, the social media giant delivered a weak fourth-quarter 2021 earnings report after experiencing its first-ever decline in daily active users on the Facebook platform. All around, growth to wrap up 2021 was patchy -- Apple's iOS privacy update, coupled with the company's transition to short-form video (Reels), continued to place pressure on its top line.
To add fuel to the fire, Snap warned investors earlier this week that the macroeconomic environment has worsened more than anticipated. As a result, the social media company is now likely to report revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) metrics beneath the low end of its Q2 2022 guidance range. As expected, the news had a detrimental impact on other ad-driven companies, including Meta, as investors now fear we're facing a large-scale slowdown in digital advertising.
For Meta, a company that generates virtually all its revenue via advertising, this news is certainly not something investors should ignore. But down 46% year to date, is now an optimal time to buy Meta stock?
Source Fool.com
