During a federal antitrust trial, Instagram co-founder Kevin Systrom revealed that Meta, then known as Facebook, limited resources to Instagram after acquiring it. Systrom testified that Meta CEO Mark Zuckerberg was concerned about Instagram's burgeoning success and its potential to threaten Meta's growth trajectory.
Systrom's testimony highlights internal dynamics at Meta (META, Financial) following its purchase of Instagram. According to his statements, Zuckerberg intentionally withheld investment from the app to curb its growth, fearing it might overshadow Meta’s primary platform.
This testimony sheds light on the competitive strategies employed by large tech companies like Meta to maintain dominance over acquired entities. The trial could have significant implications for antitrust regulations and the future operations of Meta-owned Instagram. The case continues to unfold as more details emerge from the court proceedings.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 62 analysts, the average target price for Meta Platforms Inc (META, Financial) is $712.65 with a high estimate of $935.00 and a low estimate of $260.00. The average target implies an upside of 42.45% from the current price of $500.28. More detailed estimate data can be found on the Meta Platforms Inc (META) Forecast page.
Based on the consensus recommendation from 72 brokerage firms, Meta Platforms Inc's (META, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Meta Platforms Inc (META, Financial) in one year is $489.93, suggesting a downside of 2.07% from the current price of $500.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Meta Platforms Inc (META) Summary page.
