RBC Capital Slashes Price Targets Of Meta, Alphabet, Pinterest, Amazon - Read Why - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Pinterest (NYSE:PINS)

RBC Capital analyst Brad Erickson dove in deep with SMB-focused advertising agencies for near-term spending feedback and the ever-evolving competitive landscape across different ad channels.
Bottom line, he found clear signs of cracks forming on overall spending though interestingly, SMB weakness seems very much yet to entirely run its course, indicating potentially a more persistent risk to 2H estimates.
Competitively, TikTok spends are likely to get cut before Alphabet Inc GOOG GOOGL or even Meta Platforms Inc META near-term due to it being less mission-critical for revenue generation.
However, he detected noticeable TikTok ad platform & scalability improvements which is an incremental negative for META longer-term vs. his prior checks.
He reduced estimates and price targets on META, GOOGL, Pinterest, Inc PINS & Amazon.com Inc AMZN.
He cut the price target of META to $200 from $240; GOOGL to $2,700 from $3,420; AMZN to $144 from $175; PINS to $23 from $26.
He had lowered the same for Snap Inc SNAP in May post negative preannouncement.
He found arguments for multiple expansion from the current attractive levels on GOOGL & META as somewhat weak, leaving less room for upside in the stocks pending signs of budget stability and better visibility around reacceleration.
Price Action: META shares traded lower by 0.21% at $169.77 on the last check Monday.