Needham sees no need for Meta to compete with TikTok, YouTube, Amazon, Google

  • by Needham Laura Martin said Meta Platforms Inc. META declining brand value is a leading indicator of rising customer acquisition costs, churn levels, and declining pricing power.
  • The declining value of the mainstream brand made it gradually more cautious of META.
  • Kantar’s 2022 Global Brand Study concluded that Facebook’s brand value fell from 6th in 2021 to 8th in 2022, and its total brand value fell 18% year-on-year, marking the largest one-year value destruction for any top brand. ten.
  • Read also : TikTok president explains why copying the old won’t be conducive to Facebook
  • Martin was pessimistic about META’s efforts to catch up with TikTok and, Alphabet Inc. GOOG GOOGL YouTube in the video; and Amazon.com Inc. AMZN & Google in e-commerce.
  • She was also concerned about META’s huge expense to create a metaverse reflecting her existential risks to her historical collection of companies.
  • Martin saw that META’s vision for the future would not materialize in eight years, forcing it to cancel the huge investments in 2022 and 2023.
  • Martin has a Hold rating on Meta with a price target of $160.87.
  • Price Action: META shares traded up 1.51% at $163.30 when last checked on Friday.

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