Meta Platforms (NASDAQ:META) joins other tech giants in the latest layoff spree as the global economic slowdown is taking a toll on their performances. As per a Wall Street Journal (WSJ) report, the announcement about the layoffs of thousands of Meta employees, as part of the company’s cost-cutting drive, could be made as soon as Wednesday. Down more than 73% year-to-date, the stock has started to rise in the past day.
As of the end of September, META had over 87,000 people working for it.
The move was indicated by CEO Mark Zuckerberg in the third-quarter earnings call as well. “In aggregate, we expect to end 2023 as either roughly the same size or even a slightly smaller organization than we are today,” Zuckerberg had said.
In Meta’s latest earnings report, the company reported a 49% drop in its earnings to $1.64 per share. The Q3 performance was impacted by a 19% jump in overall costs and expenses and a 4.5% drop in revenue. Thus, Meta’s move to lower costs might control the falling bottom line to some extent.
What is the Prediction for META Stock?
Meta Platforms stock has a Moderate Buy consensus rating based on 24 Buys, 10 Holds, and three Sells. The average META stock price target of $148.21 implies upside potential of 63.24%.
