A Wall Street Journal report highlighted that Meta Platforms (NASDAQ:META) joined hands with digital media company BuzzFeed (NASDAQ:BZFD). Under the arrangement, Meta is paying BuzzFeed to bring more content creators onto its social media platforms, like Facebook and Instagram. The report highlighted that the deal could be worth $10 million. The move comes amidst a slowdown in the businesses of both companies.
Notably, Meta has struggled recently as increased competition from peers, primarily TikTok, weighed on its user growth and financial performance. Further, a weak macro environment weighed on advertising revenues.
BuzzFeed, which generates most of its traffic from Facebook, YouTube, and TikTok, has seen its stock lose substantial value in the past year. A decline in the number of hours spent by users on its owned and operated properties and third-party platforms and lower advertising revenue dragged BZFD stock lower.
Meta’s user engagement could get a lift with more content creators on its platforms. Meanwhile, it would help the company tap into the ongoing internet trends. Meta transitioned toward short-form videos like Reels to engage more users.
Besides for competition, legal and regulatory headwinds continue to hurt Meta stock. Let’s examine what Wall Street recommends for Meta stock.
What’s the Prediction for Meta Stock?
Most Wall Street analysts maintain a bullish view of Meta stock despite headwinds. It has 29 Buy, seven Hold, and three Sell recommendations for a Moderate Buy consensus rating. However, analysts’ price target of $150.03 implies an insignificant upside potential of 6.03%.
