According to Wall Street analysts, fierce competition from social media platform TikTok - an application that is threatening the position of the Silicon Valley giant along with changes in Apple's privacy will still be a cause for concern for the Meta Platforms giant in the upcoming period.
At least 16 brokerage firms have cut their price targets for Meta after the company reported a second-quarter revenue cut on July 27.
This also points to the challenges that US corporations are facing from the stronger US dollar and concerns about an impending recession.
Previously, Meta's stock had fallen about 6% to $159.8, causing the social media giant's capitalization to evade by about $30 billion in market value in just one day.
Last year, Meta's valuation reached $1000 billion and ended the year at more than $900 billion.
Apple has pushed digital advertising back when it introduced new privacy control measures on the iPhone last year.
Apple's actions have made it more difficult for big names like Meta or Snap Inc to target target target audiences and measure ads on their apps.
According to analysts, the above move of "defects" along with the recent strong development of TikTok is exacerbating Meta's concerns about recession.
The rapid growth of TikToks short-form video app and Apple iOS changes will have a strong impact on Meta by 2022, said JP Morgan analysts.
Despite the challenges the company is facing, many experts expect Meta to return and grow more strongly in 2023.
However, focusing too much resources on Metaverse is hampering Meta's innovation plans, especially as management agencies are increasingly held back from large technology companies.
Another notable factor that is weighing on the stock of parent company Facebook is the US Federal Trade Commission (FTC).
Recently, the organization filed a complaint to prevent Meta from acquiring virtual reality content producer Within Unlimited, the company behind the VR Supernatural fitness app.
