Meta stock up 110% YTD as the company faces challenges in Q2 – what to expect?

Kaunas, Lithuania 2022 - April 14: Meta logo on screen and Mark Zuckerberg is a Chief Executive Officer of Metaverse in background
Meta stock up 110% YTD as the company faces challenges in Q2 – what to expect?

Key Takeaways:

  • Meta Platforms stock META jumps 110%.
  • The company faced several challenges, including giving up Giphy.
  • European regulators fine Meta for record $1.3 billion.

YEREVAN (CoinChapter.com) – Meta Platforms’ same-name stock partially pared its 2022 losses, rallying 110% year-to-date. As a result, META stock changed hands at just under $250 per share in presale on May 25.

Meta Platforms (META) daily price action chart. Source: tradingView.com
Meta Platforms (META) daily price action chart. Source: TradingView.com

As a result, the stock’s price action stood above its 20, 50,100, and 200-day exponential moving averages and reversed the death cross between the EMA 20 and 200 (light and dark blue waves) that occurred in Jan 2022.

Despite the year-to-date rally, the expert forecasts for META were dispersed across a wide range. The 51 analysts offering 12-month predictions for the stock arrived at a median target of $280 per share, a 12% potential increase from the current value. The highest estimate stood at $350, while the lowest reached $100.

Meanwhile, META had an eventful week. Here is a short recap:

Meta sells Giphy to Shutterstock, losing $53 million in the process

Online stock photo marketplace Shutterstock acquired Giphy from Meta, leaving the tech giant $53 million behind, as the latter acquired Giphy in 2020 for $315 million. Shutterstock noted that the acquisition would add “minimal revenue in 2023.”

Notably, Meta did not volunteer for the unprofitable deal. UK’s Competition and Markets Authority had ordered Meta to divest Giphy in 2022, citing potential anti-competitive effects. “We are grateful to the Giphy team during this uncertain time for their business, and wish them every success,” a Meta spokesperson told CNBC at the time of the divestiture order.

Shutterstock also praised Giphy on its growing popularity worldwide, counting reasons for a profitable acquisition.

meta platforms, Meta stock up 110% YTD as the company faces challenges in Q2 – what to expect?

EU fines Meta for a record $1.3 billion

European Union regulators fined Meta a record 1.2 billion euros ($1.3 billion), citing violations of EU privacy laws. In detail, Meta transferred the personal data of EU Facebook users to servers in the United States.

The European Data Protection Board announced the fine in a statement on May 25. Additionally, the regulator asserted that saying it followed an inquiry into Facebook by the Irish Data Protection Commission, the chief regulator overseeing Meta’s operations in Europe.

The Data Protection Board also said the processing and storage of personal data in the US contravened Europe’s signature data privacy law, known as the General Data Protection Regulation (GDPR).

Also read: Is the Current Oil Market Dip an Opportunity in 2023?

Additionally, Meta Platforms slashed jobs across its business and operations units on May 25, as it carried out its last batch of a three-part round of layoffs, part of a plan announced in March to eliminate 10,000 roles.

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