If AI-generated content becomes the next big trend in social media, Meta will have to move quickly to fend off competition and remain relevant, MoffettNathanson analyst Michael Nathanson believes. Shares of Meta have fallen around 4% since the launch of Sora on Sept. 30.
“Any perceived threat to Meta’s engagement flywheel, and by extension, its ad monetization momentum, could quickly weigh on sentiment,” Nathanson wrote. “Should Meta’s top line fall short of [Wall] Street expectations, we would expect a meaningful pullback in the stock.”
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