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.
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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%.
