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Meta platforms today

$ 502.31 -19,21 (-3.68%)

As of 04:00 on the East

52-week range

$ 414.50

▼

$ 740.91

Dividend yield

0.42%

P/e ratio.

21.00

Value is valuable

$ 686.83

For investors in magnificent seven stock meta -platforms NASDAQ: metRecent changes in the target prices of analysts have not brought much pleasure. Many analysts have been reducing their price purposes in this powerful company since the beginning of April. Among the analytical updates tracked by Marketbeat since the beginning of the month, target price indicators have decreased by an average of 14%. Analysts are concerned about the effect New tariff policies In META business.

However, there is a silver lining. All these analysts are still given shaping a rating of purchase or overweight. In addition, the average of these new goals is still impliling significant growth in the meta. Compared to the cost of closing the action on April 14, these new goals signal growth of more than 23% for metaField

So, what are the reasons for these lower price goals on this technical giant? The analysis below will destroy how tariffs can negatively affect meta. It will also give an idea of ​​why he can withstand the storm much better than the competition.

Detailing the potential exposure of tariffs on meta

First, it is important to know that the tariffs have several limited direct influence on metaThe company in essence earns all its money for advertising, which is a service and does not depend on tariffs. Nevertheless, its equipment for virtual reality can show that the margin damages, since the costs increase from international sales or international production imports.

Nevertheless, the VR segment of the company is already very disadvantageous and is not the main factor in shares. Higher costs from the tariffs associated with setting up the META data processing center can negatively affect the company.

Nevertheless, a much more destructive effect on the META business will be indirect. Tariffs increase expenses for many companies. Thus, budgets in different departments will feel compressor. This is no different for advertising budgets. The companies may have to significantly reduce its advertising expenses, which will lead to smaller income for meta. This is true not only in the broad sense, but also in two specific cases.

Temu, Shein and Chinese advertisers as a whole can spend less on META

Meta receives Significant income from advertising From the theme and Shane. These two platforms send very cheap goods from China to the United States. The new rule can significantly slow down their business. President Trump completed the exclusion of De minimis. This exemption allowed goods worth less than $ 800 to avoid tariffs. With this liberation, topic and Shane could see how their expenses increase. Packages previously imported to America in accordance with the exception of de minimis will collide with a tariff equal to a large -scale 120% of their cost, starting on May 2.

This increase in value will damage the results of these companies, reducing the amount of money that they should spend on advertising. Analysts from the Bank of America evaluate TEMU and Shein from 2% to 4% of the total income from AD META. They put the same as Temu and Shein in the parental company Google, Alphabet NASDAQ: GoogField In addition, 11% of META revenues by applications from Chinese companies in 2024.

In general, Chinese weakness from mass tariffs can also significantly affect meta. In a more general plan, the lower growth and uncertainty of business in the United States and around the world can reduce the costs of AD in META.

Why can meta rise above the package

There is reason to believe that META can financially exceed other advertising platforms over a lower period of expenses. Thomas Champion Piper Sandler says that “if there are pockets of expenses that will be provided with a ring, it will be Google Search and Meta.” This means that advertisers least reduce the costs of these platforms. This is due to the fact that advertisers are clearly investing for advertising expenses in META applications.

Data from Emarketer show that people spent almost the same amount of time on YouTube and the META application in 2024. Both had about 7.5% of cases that adults spent on digital platforms in the United States.

However, Meta captured colossal 21.3% of the total number of advertising costs.

This is 3.8 times more than 5.6% of the costs of AD, captured by YouTube. This shows how marketers see in Meta a much more effective place to spend advertising dollars compared, despite the fact that users spent on the fact that users were similar.

META’s main attention on AD personalization using AI probably generates this difference.

This effectiveness can make META advertising income much more stable than other advertising companies in difficult times.

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