Sanctions are a double-edged sword
$Bank of America (BAC.US)$ believes the war in eastern Europe will make it harder for social media giant $Meta Platforms (FB.US)$ to bounce back from its recent slide.
The bank's analyst Justin Post cut his price target on Facebook parent Meta to $290 a share from $333, and said in a note to clients on Monday that the war in Europe limited the stock's upside.
At a meeting last week, Meta's chief financial officer said Meta's advertising exposure to Russian advertisers was 1.5%, and the company's business in Western Europe was showing some signs of weakness due to the conflict, the report noted. While the company's impact in Russia may have been priced in on Wall Street expectations, the company's European markets remain volatile and risks have increased significantly.
Russia banned access to Facebook in early March. The stock has fallen 40% since early February before Russia attacked Ukraine.
The bank's analyst Justin Post cut his price target on Facebook parent Meta to $290 a share from $333, and said in a note to clients on Monday that the war in Europe limited the stock's upside.
At a meeting last week, Meta's chief financial officer said Meta's advertising exposure to Russian advertisers was 1.5%, and the company's business in Western Europe was showing some signs of weakness due to the conflict, the report noted. While the company's impact in Russia may have been priced in on Wall Street expectations, the company's European markets remain volatile and risks have increased significantly.
Russia banned access to Facebook in early March. The stock has fallen 40% since early February before Russia attacked Ukraine.
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