Meta Platforms Inc META shares are trading lower Wednesday even though several analysts raised price targets on the stock on the heels of CEO Mark Zuckerberg's memo to employees.
What To Know: Meta announced plans to lay off 10,000 more workers as it continues to cut costs to strengthen its structure amid the current economic environment.
Zuckerberg sent a memo to employees explaining the company's new focus which includes flattening the organization, canceling lower-priority projects and reducing its pace of hiring.
- Oppenheimer analyst Jason Helfstein maintained Meta with an Outperform and raised the price target from $235 to $260.
- Citigroup analyst Anthony Powell maintained Meta with a Buy and raised the price target from $228 to $260.
- Raymond James analyst Aaron Kessler maintained Meta with an Outperform and raised the price target from $220 to $238.
- Wolfe Research analyst Deepak Mathivanan maintained Meta with an Outperform and raised the price target from $220 to $230.
What's Pushing Shares Lower: Although multiple analysts are out with positive adjustments following the announcement for continued job cuts, the broader market appears to be selling off after new developments related to Credit Suisse Group CS sparked fears of wider contagion in the financial sector in the wake of a series of bank runs last week that led to the biggest banking collapse since the 2008 financial crisis.
Credit Suisse tanked in early trading Wednesday after the firm's largest shareholder, Saudi National Bank, said it could not buy additional shares of the Swiss bank.
"We cannot because we would go above 10%. It’s a regulatory issue," SNB chairman Ammar Al Khudairy told Reuters.
The news comes after Credit Suisse announced earlier this week that it found "material weakness" in its process for reporting financials. The news appears to be spreading nervousness that weakness persists in the banking sector.
Check This Out: Credit Suisse Plunges Hard Putting Market Rally At Risk; What's Going On With The Swiss Bank
META Price Action: Meta shares were down 1.77% at $190.58 at the time of writing, according to Benzinga Pro.
Photo: Gerd Altmann from Pixabay.
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