Ad mogul sees Meta rebounding extremely strongly, Amazon ad revenue hitting $100 billion
Summary
Advertising titan Martin Sorrell believes Meta will rebound "extremely strongly this year" and sees a promising outlook for U.S. tech giants, despite a bruising 2022 and mass layoffs. It also issued bleak fourth-quarter guidance that wiped out around a quarter of its market cap, pushing the stock to its lowest since 2016. A broad slowdown in online ad spending and competition from new rivals such as TikTok, along with challenges associated with privacy changes to Apples iOS, have hampered the social media groups business over the past year. The company has also taken a substantial hit from its massive investment in building its augmented reality world known as the metaverse — a strategy that has proven divisive among analysts and investors. Sorrell, executive chairman of U.K. advertising agency S4 Capital , expects Meta to address most of its business challenges in 2023, while benefiting from Chinas reopening.
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