Nasdaq FB FaceBook

Rivan (NASDAQ: RIVN) stock has dominated news headlines recently with its splashy IPO. But there are some good reasons for investors to resist jumping into a newly public company's shares.

In early trading on Monday, shares of Dollar Tree topped the list of the day's best performing components of the Nasdaq 100 index, trading up 12.6%. Year to date, Dollar Tree registers a 17.8% gain.

Are These Top Metaverse Stocks Worth Investing In This Week?If you have been keeping up with the latest stock market news, you would know about metaverse stocks. After all, these are companies whose businesses revolve around bringing the increasingly real metaverse to life. In sh

U.S. stock indexes were buoyed by technology stocks on Monday as concerns over rising inflation saw investors shift to economically resilient sectors ahead of major retail earnings and data this week.

U.S. stock indexes were set to rise on Monday as economically resilient sectors benefited from inflation jitters, while investors awaited a slew of retail earnings and economic data this week to gauge the health of consumer spending.

U.S. stock index futures rose on Monday as major technology stocks advanced, while investors awaited a slew of retail earnings and economic data this week to gauge the health of consumer spending.

Booking Holdings (NASDAQ: BKNG) hits a new high as Airbnb (NASDAQ: ABNB) posts record revenue. Peloton (NASDAQ: PTON) takes a hatchet to its guidance, so investors take a hatchet to the stock price. MercadoLibre (NASDAQ: MELI) bounces back with a strong third-quarter report. Motl

Meta Platforms, Inc. (FB) is the world’s largest social media network, providing some of the most popular applications to connect and communicate online, such as Facebook, Instagram, Messenger, WhatsApp, and Oculus, which makes virtual headsets for gaming and entertainment. The main revenue source for Meta Platforms comes from the advertising business.

The corporate rebrand to Meta Platforms, from the previously named Facebook, comes at a time when investors need to consider three different factors that could impact the business prospects of this leading social media empire. I am bearish on FB stock considering all three of these factors. (See Analysts’ Top Stocks on TipRanks)

Mixed Q3 Results

Meta Platforms reported better-than-expected third-quarter earnings, but missed estimates on revenue. The social media and technology company reported earnings of $3.22, versus $3.19 per share expected by analysts. Revenue reported was $29.01 billion, versus the expected $29.57 billion. Meanwhile, the daily active users (DAUs) reported figure of 1.93 billion came in-line with consensus, and monthly active users (MAUs) were weaker-than-expected, coming in at 2.91 billion vs. 2.93 billion.

Additionally, the average revenue per user (ARPU) also was weaker-than-expected, with a figure of $10 compared to $10.15.

The positive news is that Meta Platforms announced a $50 billion increase to its share buyback program. The company said that they "repurchased $14.37 billion of our Class A common stock in the third quarter and had $7.97 billion remaining on our prior share repurchase authorization as of September 30, 2021.”

Although this is good news for the intrinsic value of FB stock, a deceleration in revenue growth, which has been present for three consecutive years, is a cause for concern. The 2018, 2019 and 2020 data shows that revenue growth was 37.35%, 26.61%, and 21.60%, respectively. In absolute numbers, revenue continues to grow, but this growth is losing momentum.

During its earnings call, Meta Platforms attributed the decline in revenue to changes Apple (AAPL) made to its iOS 14.5 privacy options. Apple allowed its users to opt-out of apps tracking them across the web, resulting in lower conversion rates for advertisers, and lower advertising revenue consequently for Meta Platforms.

Bearing this in mind, Meta Platforms will have to spend and invest in its targeting system related to the advertising business and improve the algorithms.

Pivot Toward the Metaverse

The decision to rebrand from Facebook to Meta Platforms is a major business decision. CEO Mark Zuckerberg considers the metaverse to be a “successor to the Internet.” But what is a metaverse? A metaverse is a completely digital world in which multiple people can interact within a 3D environment, create avatars, and engage in activities such as entertainment, gaming, and online shopping.

It is difficult to say if other social media platforms will follow Meta Platforms' example and pivot toward a metaverse-centric business model, but until widespread adoption occurs, it remains a considerable risk.

An Ethical Accusation

Meta Platforms has recently faced a PR crisis after a whistleblower publicly testified to U.S. lawmakers, accusing the company of putting “profits before people.” Numerous leaked documents were published which suggested the Facebook algorithms had been drawing users toward circles of hate and misinformation.

Zuckerberg has defended the practices of his firm by stating that the testimony was “a coordinated effort to selectively use leaked documents to paint a false picture of our company.”

This is hardly the first high-profile controversy in which FB has been embroiled. Headlines were published in 2017 alleging that political consulting and strategic communications firm Cambridge Analytica had collected personal information from about 87 million users on Facebook. This data security breach may now have been left behind by the investment community, but the ethical track record of FB has only seemed to garner more and more negative media attention.

Putting profit over public safety is a dangerous game to play. Meta Platforms has announced that it will soon remove advanced targeting options which involve sensitive topics. These issues can include health, race, religion, ethnicity, and political affiliation.  

Wall Street’s Take

On TipRanks, Meta Platforms has an analyst consensus rating of Strong Buy, based on 29 Buys, 6 Holds, and 1 Sell rating. The average Meta Platforms price target of $405.59 implies a 12-month 18.98% upside potential.

Disclosure: At the time of publication, Stavros Georgiadis, CFA did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.

Cathie Wood runs one of the most popular tech stock funds, the ARK Innovation Fund (NYSEMKT: ARKK), with more than $19 billion under management. This fund is not only popular, but it is also soundly beating the S&P 500 with a five-year return of 39% annually (as of Sept. 30).

One of my favorite traits when looking for a company to invest in is creativity. Whether through creative products, content creation, or enabling creativity in general, highly creative companies naturally generate growth optionality from their operations. Creativity is optionalit

The metaverse is coming. And the internet as we know it will never be the same. The global economy might be forever changed, too.

As delegates work overtime to reach a final deal at the U.N. climate conference in Glasgow, Reuters reporters are on the ground delivering the latest updates, scenes and insights.

Global equity markets rallied on Friday, with European shares hitting new highs on strong earnings, while the dollar eased but posted its biggest weekly gain since late August.

Stocks ended a choppy week on a positive note but it wasn't enough to pull the major market indexes into the green on a weekly basis.

What happened Shares of Hepsiburada (NASDAQ: HEPS) were plunging today after the Turkish e-commerce company slashed its forecast for the current quarter and the full year in response to the lifting of pandemic restrictions. The company also announced an advertising partnership wi

Global equity markets rallied on Friday, with European shares hitting new highs on strong earnings, while the dollar eased but was on track for its biggest weekly gain since late August.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

U.S. stock indexes rose on Friday, as Johnson & Johnson and big technology and communication stocks led gains at the end of a week scarred by deepening concerns over prolonged inflation.

U.S. stock indexes rose on Friday, as Johnson & Johnson and big technology and communication stocks led gains at the end of a week scarred by deepening concerns over prolonged inflation.

Two major companies have made moves recently that suggest they are moving in opposite directions when it comes to one of the most basic things about a corporation: Its size and scope.