After a series of layoffs over the past year, the social media and technology behemoth Meta Platforms (NASDAQ:META) is again preparing to trim its workforce. This time, it plans to remove employees from the Agile Silicon Team, also known as FAST, as reported by Reuters.
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Per the report, Meta informed employees about the layoffs via its internal discussion forum, Workplace. Further, the company mentioned that the employees would receive information about their employment status by early Wednesday morning.
Meta set up FAST to develop its own silicon to power its devices and servers and build the next-gen of metaverse AR/VR products. However, the company has shifted its focus towards proactively reducing costs and increasing efficiency to cushion its earnings in 2023. Further, Meta is deploying resources towards more compelling opportunities, like generative AI (Artificial Intelligence).
During the Q2 conference call, Meta’s CEO, Mark Zuckerberg, said that the company has gotten through the significant layoffs and is now committed to ensuring stability for its employees. He added that Meta is focusing on introducing new AI-powered tools. Nonetheless, the company’s primary emphasis will be on projects with revenue-generating potential, while those that do not contribute to revenue will be given less priority.
As Meta concentrates on enhancing efficiency and fostering growth, let’s look at what the Street recommends for its shares.
Is Meta Stock a Buy or Sell?
Meta Platform stock is up about 150% year-to-date. Despite the significant appreciation in its value, analysts see further upside and are bullish about its prospects.
Wall Street expects Meta to benefit from its deep cost-cutting measures, improving online advertising trends, higher user engagement on its platforms, and AI initiatives. 42 out of 44 analysts covering Meta stock recommend a Buy. Two analysts maintain a Hold. Based on these recommendations, Meta stock has a Strong Buy consensus rating. At the same time, analysts’ average price target of $376.53 implies a further upside potential of 25.12% from current levels.
