Meta Shares Fall 2.4% After Nine-Day Rally as Layoffs Hit 10% Workforce
Meta shares slipped 2.4%, ending a nine-session rally that gained 20%, as planned layoffs target around 8,000 employees—about 10% of its workforce—on May 20. Meta holds a 3.41 profitability rating with 58 of 64 analysts at Buy or better, driven by AI revenue growth and margin expansion.
1. Stock Pullback and Rally History
Meta Platforms saw its shares decline 2.4%, bringing to an end a nine-session winning streak that delivered roughly a 20% gain. This pullback reflects investor caution after an extended rally driven by renewed confidence in the company’s AI monetization prospects.
2. Planned Workforce Reductions
Reports indicate Meta plans to reduce its headcount by about 8,000 employees—approximately 10% of its total workforce—around May 20, with the potential for additional cuts later in the year as it seeks to streamline costs.
3. Analyst Ratings and Financial Outlook
Despite the recent pullback and layoff plans, Meta maintains a strong 3.41 profitability rating. Of 64 covering analysts, 58 rate the stock Buy or better, citing improving AI-driven revenue trends, ongoing margin expansion and solid growth prospects.