Meta Platforms (NASDAQ:META) announced changes to Facebook Feed that will allow its users to customize the content they see in their feeds. The move arrives while the social media giant is struggling to drive user engagement amid increased competition.
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Facebook’s new feature has a “Show more” or “Show less” option, allowing users to personalize the feed and see what’s most relevant to them. This personalization could drive engagement, and is considered by many to be a positive move.
However, Meta’s prospects are unlikely to change much in the foreseeable future. Notably, the company faces increased competition from TikTok and Alphabet’s (NASDAQ:GOOGL) (NASDAQ:GOOG) YouTube as user interest shifts toward short-form videos.
Is Meta Platforms Stock a Buy, Sell, or Hold?
Increased competitive activity is taking a toll on Meta’s user base. Meanwhile, a weak macro environment could hurt ad spending. Given the challenges, Meta Platforms stock has lost about 59% of its value year-to-date.
Despite the correction, analysts are cautiously optimistic about META stock. It has a Moderate Buy consensus rating based on 27 Buy, five Hold, and two Sell recommendations. Further, these analysts’ average price target of $222.42 implies about 60% upside potential.
Meanwhile, TipRanks’ data shows that hedge funds bought 4.5M META stock last quarter. At the same time, insiders sold Meta Platforms stock worth $4M.
