Meta’s (META) current stock share price is $177.16, down 1.29% on February 15, 2023, down 3.42% in the last 5 trading days, up 18.92% in February, up 47.22% year-to-date, and down 9.91% in the last 52 weeks.
Meta, formerly known as Facebook, has faced a number of challenges recently, including Apple-imposed restrictions on its advertising business, the growing popularity of TikTok and falling user sentiment in the US. The company’s shares fell 65% year over year, leading to the layoff of 11,000 employees and a drop in morale. However, there are signs of improvement, with the company reporting higher-than-expected profits for the fourth quarter, leading to a 20% increase in its share price.
Despite this progress, Meta Chief Marketing Officer Alex Schultz warns employees in a recent memo to curb their enthusiasm and not focus solely on the stock price. He points out that the company is still “in the early stages of a turnaround” and that “not everything is going to work out.” Schultz also points out that Meta is still at the mercy of Apple, as the company’s new privacy feature limits the amount of data Meta can collect on mobile users, making targeted advertising more difficult.
Schultz also acknowledges that Meta’s TikTok clone, Reels, still has low monetization efficiency compared to TikTok and is smaller in terms of overall popularity. Although Meta CEO Mark Zuckerberg reports that Reels is played over 140 billion times a day on Facebook and Instagram, ads in Reels do not make as much money as ads in Facebook and Instagram feeds.
Following Meta’s latest earnings call, the company’s shares began to rise again after a period of decline, giving the company its biggest one-day gain in nearly a decade.
The company is in the early stages of a transition, and it’s not going to be a smooth process,” said Alex Schultz, the company’s chief marketing officer.
Schultz’s stated: “I’m very pleased that the outside world recognizes our transition adjustments. I have been involved in some internal discussions, and the company’s employees are confident about the future. But it is still too early to say that the company is in a recovery period”.
Overall, Meta still faces significant business challenges, but there are signs of improvement. The company must continue to address its problems and focus on the future.