Stifel has revised its price target for Meta Platforms (META, Financial), reducing it from $740 to $628 while maintaining a Buy rating on the stock. The adjustment comes in response to a broader reassessment of expectations for the digital advertising, e-commerce, marketplaces, and subscription sectors covered by the firm.
Despite digital advertising revenues performing better than anticipated, Stifel notes a general unease about the future projections for these sectors, an uncertainty not felt since the height of the COVID-19 pandemic. They anticipate a slowdown or potential decline in gross merchandise volume (GMV) for e-commerce and marketplace activities as consumers grapple with rising costs.
Stifel's cautious outlook reflects the challenges faced by digital services as they navigate the evolving economic landscape, influencing their revised projections for companies like Meta Platforms.
