Meta Q3 Review: Mountain Of Problems

Summary:

  • While Meta Platforms had a solid quarter in terms of revenue and profits, the company is facing legal troubles and regulatory restrictions, posing large financial and reputational risks.
  • Apple’s privacy changes continue to threaten Meta’s revenue growth by limiting its ability to target and measure ads on iOS devices.
  • Meta’s ad sales are sensitive to economic and geopolitical uncertainties, with ad spending declining during periods of instability. The world is getting more crazy, not less. This will impact them.

Facebook CEO Mark Zuckerberg And News Corp CEO Robert Thomson Debut Facebook News

Drew Angerer

Investment Thesis

Meta Platforms (NASDAQ:META), the parent company of Facebook, Instagram, and WhatsApp, is facing several challenges that will restrict its short-term revenue growth. While the company has seen its stock price increase almost 250% since


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Noah Cox is the Co-Managing partner of Noahs' Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

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