Meta Platforms' shares continued their slide the next day after they bumped slightly higher on Thursday. The stock fell more than 2% on Friday after an analyst cut his price target.
Daniel Salmon, an analyst with the bank, enacted a deep cut. Salmon's stock price is $225 per share, down from his previous price of $290 per share. The market perform recommendation on the shares is maintained by the prognosticator.
The image is from the same source.
Concerns about further declines in the daily active user count are what led to his price target haircut. As the company's core Facebook and Instagram portals are dependent on user participation and engagement, dwindling numbers are a worrying development. In its most recently reported quarter, the company revealed its first sequential drop in DAUs.
Salmon is not giving up hope on the future of social media. He wrote in his latest research note that he wouldn't push back hard on the argument that the company is still a top destination for online advertisers.
Meta Platforms was a soaring eagle of a stock for a long time, so it was inevitable that it would lose altitude once bad news hit the headlines. The slide in users is concerning, and the company needs to do a better job convincing investors that it is addressing it.
Meta Platforms remains an important and high-potential business, despite the fact that Facebook and other social media sites are unavoidable destinations for advertisers.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Volkman owns Meta Platforms, Inc. The Motley Fool owns and recommends Meta Platforms, Inc. The Motley Fool has a disclosure policy. score=35>Randi Zuckerberg is a member of the board of directors of The Motley Fool. Eric Volkman is the owner of Meta Platforms, Inc.
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