Meta Platforms’ (NASDAQ:META) retrenchment program is likely to continue for a while. According to a Bloomberg report, Meta boss Mark Zuckerberg informed employees that the company has effectively stopped any further hiring, and is considering showing more employees the door soon.
Meta is facing increasingly tough headwinds to its business thanks to high costs and interest rates, and is restructuring its business to reduce costs and stabilize risks to its margins. Meta is prioritizing its spending on high-growth areas like short-video Reels and the metaverse.
Speaking of the hiring freeze, Meta had reduced the number of engineer hires drastically this summer. Earlier this month, the company expressed its intent on reducing its operating expenses by 10%. Notably, in the second quarter of 2022, Meta’s operating income declined 32.4% year over year, and the operating margin of 29% was also significantly below the year-ago quarter’s 42.5%.
Zuckerberg’s warnings led the META stock to tumble 3.7% on Thursday.
What is Meta Stock Prediction?
Wall Street expects the Meta stock to grow by 63.5% to reach its average price target of $223.09 over the next 12 months. For the longer-term, analyst consensus is cautiously optimistic, with a Moderate Buy rating, based on 27 Buys, five Holds, and two Sells.
