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Meta is worth selling, even if others are enthusiastic about its stock, said Laura Martin, senior entertainment and internet analyst at Needham & Company. “Fifty buys, we sell alone,” Martin said on CNBC’s Power Lunch. “We believe that liquidity only has value if you use it.” In recent years, the company has struggled to stay relevant as younger platforms emerge. Martin called Meta’s revenue “under pressure” as ByteDance’s TikTok is diverting engagement time and content creators from its social media platforms Facebook and Instagram. She also took aim at the Metaverse, saying that chief executive Mark Zuckerberg is “spending a fortune” on a project that she says even he admits won’t be profitable until 2030. Some have been frustrated with the alternate reality technology, and Zuckerberg himself has said so. is a “trough of disappointment” in a project against which he has insured the future success of his company. “Liquidity should be used somewhere else,” she said. “We will use Meta as a source of funds.” The stock is down just over 60% this year, notably worse than the high-tech Nasdaq, which is down about 32%. She said she was concerned about Netflix’s lack of confidence in increasing total subscriptions, despite the fact that they tightened up on password sharing and added a cheaper ad-supported tier. While the company has said that the highest paid subscribers are not likely to make it to the ad-supported tier, it pointed to research that suggests otherwise and wondered where that money would be raised. The company said Tuesday in its third-quarter earnings report that it added 2.41 million net subscribers worldwide, more than double the number it forecast a quarter ago. Despite a double-digit rally since the report, the stock is down nearly 55% in 2022. “With today’s strength, we would be sellers,” she said. “We would sell Netflix at that strength.” Martin also said she expects a weak sales year for Apple, given the reaction to its new products, in particular the iPhone 14 line, and concerns about a looming consumer recession. The personal tech giant has abandoned plans to expand production of its iPhone 14 models and has asked one supplier to stop producing a component used in the Plus model while the company reassesses demand. “14 was very unimpressive,” Martin said. “I couldn’t think of a single reason why anyone should go to 14.” Apple is the only one of those stocks whose shares outperformed the Nasdaq in 2022, losing about 19% this year.
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