Meta Platforms Inc (NASDAQ: META) has massively outperformed the broader market over the past two months and that strength, as per an advertising mogul, will continue moving forward.
Martin Sorrell shares his view on the Meta stock
The tech behemoth is still facing a bunch of challenges that include:
- Slowdown in advertising spend on fears of recession
- Added competition from the likes of TikTok
- Changes Apple Inc made to privacy controls in 2021
- Enormous spending on building the metaverse
Still, Martin Sorrell – the Executive Chairman of S4 Capital told CNBC on Thursday:
I think you’ll see Meta Platforms Inc come back extremely strongly this year, on the back of reels and business messenger, to deal with the competition from TikTok and other short form video competitors.
He expects China reopening to be a tailwind for the Meta stock as well.
Jim Breyer also expects a rebound in Meta stock
Also on Thursday, Jim Breyer – the Founder of Breyer Capital also talked of a big rebound in Meta Platforms on CNBC. But he took a relatively longer-term approach and acknowledged that the near-term could remain bleak for the tech stock.
My view is, over the next 24 months, there will be a big rebound. But they’re going to be under a lot of pressure for the next 12 months. They’re not cutting costs fast enough in my humble opinion.
In late October, the Nasdaq-listed firm reported disappointing results for its fiscal Q3 and issued weak guidance for the current quarter. Weeks later, it announced plans of cutting about 13% of its global workforce to minimise costs (source).
Versus the peak in September 2021, Meta stock is still down nearly 65% at writing.
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