Shares of Meta Platforms (NASDAQ: META) were on an upswing in morning trading on Friday even as Benchmark analyst Mark Zgutowicz called for a halt to the stock rally. The analyst has a Hold rating on the stock.
While the analyst approved of META’s 21,000 job cuts in recent months, he expects these job cuts to hit the social media giant’s revenues. Zgutowicz commented, “Meta’s meaningful rally since forward revenue revisions and the stock bottomed last November (post 3Q earnings miss) is over. It’s time to lighten the load on a misperceived safe play in a troubled macro [environment].”
Zgutowicz expects Meta’s revenues to fall by 2% this year versus consensus estimates of the growth of 5% as he stated that historically, there has been a high correlation between the company’s revenue and the number of employees.
META stock has a consensus rating of Moderate Buy based on 38 Buys, six Holds, and three Sells.
