Pre-market shares of Meta Platforms (NASDAQ) fell 1.2% Wednesday, as several Wall Street analysts expressed concern about recent trends. The company is preparing to announce earnings this month.

RBC Analyst Brad Erickson reduced the price target for shares to $240.00 from $245.00 in order to reflect lower estimates.

“Another round of SMB ad agency channel checks raises our conviction that FB is likely to see another rocky quarter upcoming prompting lower estimates and PT to $240. Many SMBs are still considering digital ad spending decisions. We found no improvement in FB’s performance or targeting algorithm. We’d expect some reversion at some point given FB’s audience size and relative scaled conversion advantage (which keeps us at Outperform), but we see that narrative as unlikely to materialize near-term,” the analyst said in a client note.

Jason Helfstein from Oppenheimer also reduced his price target from $375.00 per share to $305.00 to reflect the lower estimates. These include impacts from Russia as well as continued headwinds for performance ad-targeting via FB/IG.

“Based on FB’s CFO comments at the most recent industry conference, 1Q guidance was largely driven by softening e-commerce demand, since exacerbated in Europe, as Russia/Ukraine further affects consumer spending. Core EBITDA of 6% and 1Q22E revenues 4% lower. Core EBITDA 13%/10% and ’22E/23E revenue 9%, respectively. Although shares could trade at a lower earnings level, short-term headwinds are priced in at the current levels of 22x/14x’22E GAAP EEPS/core EPS. FRL), with potential upside from Reels and shopping products,” Helfstein wrote in a report.

By Senad Karaahmetovic