Meta likely to be ‘bracing for a tornado-like quarter’: Wedbush’s Dan Ives

Meta (META) could be bracing for a “tornado-like quarter,” says Wedbush Managing Director Dan Ives.

Just like the other tech companies, the social media giant, is scaling back hiring plans as it braces for an economic downturn. This week Meta’s founder and CEO Mark Zuckerberg said the company would cut back its hiring target for this year by at least 30%.

 

“If I had to bet, I’d say that this might be one of the worst downturns that we’ve seen in recent history,” Zuckerberg told employees during a weekly Q&A session which was recorded and heard by Reuters.

 

“Because of the Apple IOS privacy issue — that’s been the been the gut punch, that continues to be a cut every quarter,” said Ives.

 

“There’s some pain ahead there,” said the analyst, noting the social media giant’s pivot towards developing the metaverse, or next generation of the Internet.

 

“You can rename the company Meta —[but] metaverse is still not until 3-5 years out in terms of revenue perspective. I think this is really bracing for a tornado-like quarter.”