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Needham Considers It Futile For Meta To Compete With TikTok, YouTube, Amazon, Google

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  • Needham's Laura Martin said Meta Platforms Inc's (NASDAQ: META) falling brand value is a lead indicator for rising customer acquisition costs, churn levels, and declining pricing power.

  • The falling consumer brand value made her incrementally more cautious about META.

  • Kantar's 2022 Global Brand study concluded that the value of the Facebook brand fell from 6th in 2021 to 8th in 2022, and its total brand value fell 18% y/y, marking the most considerable y/y value destruction for any brand among the Top 10.

  • Also Read: TikTok President Reasons Why Copying The Former Will Not Be Conducive For Facebook

  • Martin was pessimistic about META's efforts to catch up with TikTok and, Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) YouTube in the video; and Amazon.com Inc (NASDAQ: AMZN) & Google in eCommerce.

  • She was also concerned over META's enormous spending to create metaverse reflecting its existential risks to its historical collection of businesses.

  • Martin saw that META's vision of the future would not play out eight years from now, forcing it to write off the enormous investments in 2022 and 2023.

  • Martin has a Hold rating on Meta with a price target of $160.87.

  • Price Action: META shares traded higher by 1.51% at $163.30 on the last check Friday.

Latest Ratings for META

Date

Firm

Action

From

To

Jul 2020

Desjardins

Initiates Coverage On

Buy

View More Analyst Ratings for META

View the Latest Analyst Ratings

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