Meta Platforms rises even as Monness, Crespi, Hardt cuts Q2 estimates, citing recession risk
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Meta Platforms (NASDAQ:META) shares rose on Wednesday even as investment firm Monness, Crespi, Hardt cut its second-quarter earnings estimates, citing the potential for a recession.
Analyst Brian White, who rates Meta (META) shares a buy, also lowered his price target to $250 from $300, noting the company could face several headwinds, including inflation, supply chain issues, rising interest rates and "unwelcome geopolitical headwinds," continued issues with Apple's (AAPL) App Tracking Transparency, as well as worries of a potential recession. 
"Given the sensitivity of advertising campaigns to the vicissitudes of the economy, we expect digital ad spending to come under pressure during this time," White wrote in a note to clients, adding that early in the pandemic, ad budgets "plummeted." 
For the second-quarter, White now expects revenue to be $28.68B and earnings per share to be $2.56, down from a prior estimate of $29.68B and $2.58 per share in earnings. White also tweaked full-year estimates, lowering revenue forecast to $119.55B, down from $127.05B, while also cutting EPS estimates to $11.55 from $12.26.
Meta Platforms (META) shares rose 1% to $162.31 in premarket trading on Wednesday.
In addition to the aforementioned risks, White also pointed out that this recession, unlike others in recent memory, has certain "unique characteristics," including a "never-ending pandemic" and certain geopolitical events that were "unimaginable" even just a couple of years ago.
Last week, Jefferies analyst Jared Weisfeld said "very real concerns" about falling ad spending at Meta Platforms (META) have already been priced into the stock.