JPMorgan’s Meta Analyst Cuts His Rating for the First Time Since Its IPO
(Bloomberg) -- One of Meta Platforms Inc.'s biggest bulls on Wall Street has finally capitulated.
JPMorgan Chase & Co. analyst Doug Anmuth downgraded his rating on the Facebook parent to neutral from overweight after Meta reported disappointing growth. Its shares plummeted 26%, the most on record, and erased about $252 billion in market value.
Read more: Meta Faces Historic Stock Rout After Facebook Growth Stalled
The company is “seeing a significant slowdown in advertising growth while embarking on an expensive, uncertain, multiyear transition to the metaverse,” Anmuth said in a Feb. 3 report. “We move to the sidelines as we believe shares will be under further pressure or range-bound in the coming month.”
Anmuth has had a buy-equivalent recommendation on Meta since the company first went public in 2012, according to data compiled by Bloomberg. He also slashed his share price target to $284 from $385. Anmuth didn't respond to requests for comment.
JPMorgan wasn't the only one to downgrade Meta after the company gave a revenue forecast that fell short of expectations amid stagnating user growth and increasing competition from TikTok. At least three other firms cut their recommendations.
On the other end of the spectrum, Simon Baker at Societe Generale has had a sell rating on the stock since at least 2015. Baker didn't respond to requests for comment.
©2022 Bloomberg L.P.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
