Social media giant Meta Platforms, Inc. (META) is facing a slowdown in user growth and competition from TikTok. The company is reportedly planning to lay off employees to reduce expenses in the coming months. If the company goes through with the reductions, it might achieve about $5 billion of annual operating expense savings in the next year.
Morgan Stanley’s (MS) Brian Nowak has reiterated the ‘Overweight’ rating on META and sees a 2023 EPS increase of about 10% under this scenario to $10.85 from $9.90. Nowak remains positive about the company’s ability to improve user engagement and its monetization rollout of Instagram.
