Meta Platforms dips as Piper cuts price target, reiterates overweight rating (NASDAQ:FB)

Meta Platforms (NASDAQ:FB) shares dipped on Tuesday after funding agency Piper Sandler lower its value goal on the Mark Zuckerberg-led firm, noting that its promoting headwinds are prone to proceed for the subsequent a number of months.

Analyst Thomas Champion lowered his value goal to $240 from $301, however reiterated the agency’s chubby ranking, noting that Meta’s “dismal” first-quarter steering was a results of quite a few points, together with troublesome pricing comparisons, impression headwinds and elevated spending as the corporate transitions to being a metaverse-first firm.

“The info suggests difficult submit [App Tracking Transparency] compares proceed until August,” Champion wrote in a observe to purchasers. “March / April seems notably onerous.”

Meta Platforms (FB) shares ticked decrease to $187.15 in premarket buying and selling on Tuesday.

As well as, the analyst identified that negatives to impressions embody slowing each day lively person progress, the re-opening of the worldwide financial system and extra customers shifting to Reels, which at present monetize at a decrease charge than the corporate’s different merchandise.

Earlier this month, Morgan Stanley additionally lower its value goal on Meta Platforms (FB), citing headwinds for monetization on Reels.