Meta Platforms (META) faces a potential multibillion-dollar loss in ad revenue due to escalating U.S.-China trade tensions, with MoffettNathanson estimating a $7 billion impact from proposed tariffs. While the firm maintains a Buy rating, it has slashed the price target to $525. The tariffs, which affect Chinese retailers who advertise on Meta's platforms, could lead these companies to reconsider their ad budget, thus threatening Meta's dependence on this revenue stream. Analysts warn that a prolonged downturn in China could amplify losses to $23 billion by 2025.
MoffettNathanson predicts that proposed China tariffs could cost Meta Platforms up to $7 billion in advertising revenue, significantly impacting its overall financial performance.
Despite a warning of potential losses, MoffettNathanson maintains a Buy rating on META, although they have lowered the price target to $525 from $710.
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