Here’s Why This Analyst Downgraded Facebook Parent Meta

Here’s Why This Analyst Downgraded Facebook Parent Meta
The logo of Facebook parent Meta is beneath a 3D-printed logo of Facebook on a laptop keyboard in this illustration taken on Nov. 2, 2021. Dado Ruvic/Illustration/Reuters
Benzinga
Updated:

Erste Group analyst Hans Engel downgraded Facebook parent Meta Platforms to Hold from Buy.

Facebook invested 21.7 percent of revenue in research and development in the last quarter, and the intended reorientation toward virtual products and services offers new earnings potential in the future.

However, the development of the new advertising revenues is associated with high costs, which are difficult to forecast.

By Anusuya Lahiri
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