Meta Platforms Inc (NASDAQ: META) is in focus this morning after a report said the tech behemoth is planning more layoffs in the coming weeks and months.
Here’s what we know so far
To that end, the multinational has postponed finalizing budgets for several of its teams making it harder for managers to plan future workloads.
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Sources also told the Financial Times over the weekend that the delays were leaving workers demotivated and demoralised.
Honestly, it’s still a mess. The year of efficiency is kicking off with a bunch of people getting paid to do nothing.
It’s noteworthy here that the Nasdaq-listed firm has already laid off about 13% of its global workforce in recent months (source). For the year, Meta stock is currently up close to 40%.
Meta stock reiterated a ‘buy’
Earlier in February, CEO Mark Zuckerberg trimmed expected capital expenditures for the year by $1.0 billion (at least) as a show of commitment to “efficiency” as Invezz reported HERE.
Consequently, Bank of America analyst Justin Post on Monday reiterated his “buy” rating on the Meat stock. In a note to client, he said:
We see Meta as a more defensive stock in the sector this year with potential for cost rationalisation to provide more downside support to EPS in a recession scenario than industry peers.
His $220 price objective translates to about a 25% premium on the current share price. Post is bullish also on a whopping $40 billion increase in share repurchase authorisation the company announced last week and the pickup in growth at “Reels”.
Source: https://invezz.com/news/2023/02/13/meta-platforms-considering-more-layoffs/