Pre-market trading saw a 1.5% rise in Meta shares, to $117.
The stock price is down almost 65% year to date.
Doug Anmuth, an analyst at JPMorgan, recently published a consumer note in which he predicted that Meta will continue to show indications of improving its cost control.
The analyst stated:
“Heading into 2023, we believe some of these top and bottom line pressures will ease, and most importantly, Meta is showing encouraging signs of increasing cost discipline, we believe with more to come.”
Slight Sigh of Relief
Pre-market trading saw a 1.5% rise in Meta shares, to $117. The stock price is down almost 65% year to date, making it the poorest-performing component of the FAANG (Meta/Facebook, Apple, Amazon, Netflix, and Google) group.
Anmuth moved from a neutral to overweight status. From a prior estimate of 115 USD, he has increased his estimation of Meta’s value to 150 USD. Throughout the course of the year, Meta was met with widespread and severe condemnation from all corners of the globe. Meta’s sales have dropped, and the company’s CEO, Mark Zuckerberg, has been widely criticized for his botched rollout and subsequent layoffs.
Facebook’s name was changed to Meta in October of last year after Mark Zuckerberg revealed his plans to take the company into the Metaverse. Since then, Meta’s fortune has plummeted. Currently, Meta is spending a substantial amount of money on VR development. By October 2022, the company’s value had decreased by a little over 650 billion USD. It also displayed the exit by the world’s top 20 corporations.
It’s safe to say that Meta would have felt some much-needed relief after receiving the boost. There has been no change to Meta’s plunging market after the revision.