Yahoo Finance

Meta stock downgraded by 4 analysts as shares tank after earnings

Ines Ferré · Markets Reporter
Thu, February 3, 2022, 2:39 PM

Facebook parent company Meta Platform's (FB) Q4 earnings report was so disappointing that at least four Wall Street analysts downgraded the stock.

JPMorgan analyst Douglas Anmuth cut his rating to Neutral from Buy for the first time since the social media giant's IPO in 2012.

"FB is seeing a significant slowdown in advertising growth while embarking on an expensive, uncertain, multi-year transition to the Metaverse," wrote Anmuth and his team in a note to investors.

Meta highlighted it faces a roughly $10 billion headwind to {advertising} because of Apple's privacy IOS changes, which make it more difficult for advertisers to accurately target users.

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Yahoo Finance

Meta stock blowup is an important investing lesson: strategist

Brian Sozzi · Anchor, Editor-at-Large
Thu, February 3, 2022, 3:21 PM

Big-cap tech stocks such as Meta, parent of Facebook, and Netflix aren't as safe as Treasury bills, despite what the Wall Street community has pumped into the heads of investors for the past five years as these stocks have exploded. They aren't as safe as other large-cap stocks in the market, either.

And those are but a few of the takeaways for investors in the wake of Facebook's post earnings 30% crash on Thursday, opines Tony Dwyer, Canaccord Genuity chief markets strategist.

"Everybody went and thought that some of these mega-cap growth names were defensive. It's not proving out that way," Dwyer said on Yahoo Finance Live.

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