Meta stock (NASDAQ:META) was up 1.8% as of 11:32 a.m. ET outperformed the S&P 500 index’s intraday drop of 0.15% on Wednesday.
The stock was up more than 2% after the market opened in the morning, as the market began to price in the potential of an earnings release that was stronger than anticipated.
Concerns about decreasing growth in the advertising industry have sent Meta’s stock (NASDAQ:META) price down 60% year to date. On October 26, Meta will release its third-quarter results. Is it possible for the social media behemoth to turn things around?
So, what’s the deal with Meta Stock?
Economic instability and increased competition have harmed social media firms as more businesses shift ad spending online. Snap’s revenue has been significantly declining this year, and the company said in August that it would lay off around 20% of its full-time workers. Last quarter, Meta startled investors by reporting a year-over-year sales drop.
Meanwhile, Amazon’s advertising income increased by 21% in the second quarter. Advertisers no longer need to depend on social media sites to bring their brands in front of customers.
So, what now?
It might become worse for social media in 2023, particularly if the economy enters a recession, prompting marketers to cut down on spending even more.
Nonetheless, since expectations are already quite low, Metastock (NASDAQ:META) might be a fantastic contrarian investment. After all, the company’s ultimate worth is based on 2.8 billion daily active users throughout its app family.
The stock (NASDAQ:META) is low, but investors should be wary of more decline if the difficulties of managing a weaker economy continue. There’s also the issue of Apple’s ad limits on iOS, which has proved a difficult curveball for social media to overcome.
Featured Image – Megapixl © Inkdropcreative1
Author Okoro Chinedu 
