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Meta initiated hold at Benchmark as ad problem is 'getting worse, not better'

Mar. 01, 2022 8:27 AM ETMeta Platforms, Inc. (META)AAPL, BDNCEBy: Chris Ciaccia, SA News Editor56 Comments

Facebook Covers Sign At Menlo Park Headquarters

Justin Sullivan/Getty Images News

Meta Platforms (NASDAQ:FB) has an advertising problem that is "getting worse, not better" as Benchmark initiated coverage on the Mark Zuckerberg-led company.

Analyst Mark Zgutowicz started coverage with a hold rating and no price target, noting

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Comments (56)

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I own a marketing agency. The IOS 14.5 changes have killed us. We have many campaigns in the red.
Invest and Earn profile picture
@Zionfive5 what does campaigns in red mean?
@Invest and Earn yeah what @Cassidy Run said. It’s actually been crazy. On one product we were making 20:1 before iOS 14.5. Was making us rich. Now that same product struggles to break even, and we are looking at other ways to market the product.
Hmmmm, we turned an open network into fascist thought censorship, then our user engagement dropped.
Longbow Archer profile picture
@BSBA Econ To be fair it took a full week for Truth to drop from #1 to out of the top 5 so they did last a day or two at number one.

Don't be so tough on Truth.
Hawkmoon69 profile picture
@BSBA Econ Agreeing to service terms, and being held accountable for lies that cause harm isn't fascism, its being an adult. An adult would also know that being asked to exhibit mature behavior and showing responsibility isn't fascism; but we are now in a world where people lose their minds when being asked to think of others.
@Hawkmoon69 Otherwise known as opinion, which everyone is entitled to, regardless if the left wants to act like dictators to protect their unsupportable views in the free market of ideas.
KeithRichards profile picture
Breaking news: Russia has nuked the Metaverse.
Solojif1 profile picture
Disgusts me that YouTube and FB get ad dollars when broadcasting videos of carnage in Ukraine. It’s almost like they are profiting off peoples misery.
Invest and Earn profile picture
@Solojif1, The counter argument would be that it’s disgusting to see you choosing to not donate or help ukraine while complianing of platforms you use for free.
Longbow Archer profile picture
@Solojif1 You mean the nightly news with CNN, FOX, ABC, CBS, NBC ... ???

The only place you can watch news and not make that complaint is PBS news hour.
That's literally the news industry, which Facebook has started to compete against. Have you ever watched the news? Even when times are calm and crime rates are remarkably low, there will still be a piece on someone getting murdered somewhere, regardless of whether that effects the viewers in any way, leaving people to think that the US is far more crime-ridden than it actually is. Meanwhile, good news seems to get underreported.

At least in the case of the carnage in Ukraine, news on that is relevant and important, if only so you can make more informed political decisions and know to vote against Russian-sympathizing politicians.
Investing For The Future profile picture
The Russian invasion of Ukraine is a blessing in disguise for FB. They are finally getting some positive PR. Very important and should not be underestimated.

Ha! Bet you didn’t expect that comment from me.

Let’s see how the next 2 quarterly reports pan out.
Invest and Earn profile picture
@Investing For The Future cant believe its coming from you :)
Herbert +H-Dog+ Kornfeld profile picture
LMAO if Benchmark has such insight, why didn't it ring an alarm on Meta BEFORE the share price collapsed?
Green Elmo a.k.a. User 48289781 profile picture
"... biggest competitor is ByteDance's (BDNCE) TikTok, which now has more than 1 billion monthly active users, including nearly 200 million in the U.S., compared to 240 million for Meta.'

Nearly than 200M active users in the US? Gosh, you sure can trust that data.
Safety Dance profile picture
Both sides hate this company. One because they suppress speech. The other thinks they don't do enough of it.
@Safety Dance I think it’s possible to hold both views simultaneously. I’m not invested in either one nor would I. I had spent too much time holding my nose.
zagrebzagreb profile picture
@Safety Dance I'm guessing you have no idea who or what Cambridge Analytica is and why someone might hate FB because of them. Hint: it has nothing to do with suppressing speech.
17144952 profile picture
Excellent. They need to go to zero.
wanster profile picture
Time for FB to join MySpace and AOL on the ash heap of technology castaways. I have 4 kids in their 20's, none of them or any of their friends do anything on Facebook, oops I mean Meta >
@wanster right. They waste their lives on twitter, insta chat, sh!t tok, etc.

Great job.
wanster profile picture
@The Exception No, they do very little of that. They have first level full time jobs, are busy securing apartments, cars and prepping for advanced degrees, Sound familiar? The worst thing they do is watch some shows on Netflix or Hulu.
Fooly Finance profile picture
@wanster Wow four people, that will dent FB which has nearly 3bln users globally.
careful investor 1 profile picture
The analysts are not giving free advice. Keep that in mind when investing.
Gary J is Rich on AMZN profile picture
@careful investor 1

This article contains analysts comments for free..
@Gary J is Rich on AMZN if they are the ones you stated on Meta in the last SA articles I think anyone can keep investing in or staying long Meta without any problem.
I hope this reaches all-time lows below $38. Wouldn't mind to see it go to zero.
Moats and Income profile picture
It all looks good in the VR world…;)

Will be a classic MBA business case study.
Sadly, Meta is in a downward spiral. Happily, SNAP is on an upward spiral.
Invest and Earn profile picture
@Growth2025 😂🤣
@Growth2025 Sadly today’s analysts have become nothing but snake oil salesmen. Peddling overpriced garbage stocks to retail investors. Effectively co-signing these sort of comments. Which are simply untrue. Yet go unchecked simply because legacy media has it out for Facebook. No surprise SA publishes an upgrade for SNAP and a downgrade for FB shortly after. It’s actually pretty disturbing to see those that are paid to analyze financials for retail investors looking to gain knowledge. Get lead astray by those clearly with an agenda. FB dirt cheap compared to SNAP, but the average retail investor isn’t seeing that promoted by today’s analysts. They instead rather push narratives that chase momentum.
Gary J is Rich on AMZN profile picture

"It’s actually pretty disturbing to see those that are paid to analyze financials for retail investors looking to gain knowledge."

Actually it's pretty great. Exposing their declining user growth is a service to investors. Prove their numbers wrong. Actually, prove FBs own numbers wrong.

"Facebook lost roughly 1 million daily active users between Q3 and Q4 of 2021, according to its earnings report. This is the first time it has ever reported a decline in user numbers.Feb 3, 2022"
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