Last Updated on January 19, 2023 by Bitfinsider

Despite a brutal 2022 and major layoffs, advertising behemoth Martin Sorrell believes Meta will return “very strongly this year” and sees a bright future for US tech titans.

Almost the last year, US IT companies have let off over 60,000 workers due to slower economic development, increased lending rates in reaction to soaring inflation, and competitive hurdles. margins have been stretched, and stock prices of tech behemoths have been pummeled.

In November, Facebook parent Meta announced intentions to lay off 13% of its workforce, or more than 11,000 people. It also offered gloomy fourth-quarter outlook, wiping away over a quarter of its market cap and sending the stock to its lowest level since 2016.

A general slowdown in online ad spending and competition from new rivals such as TikTok, as well as issues related with Apple’s iOS privacy restrictions, have hurt the social media group’s revenue during the past year.

The company has also taken a significant hit as a result of its large investment in developing its augmented reality environment known as the metaverse – a plan that has divided analysts and investors.

Sorrell, executive chairman of U.K. advertising agency S4 Capital, believes Meta will be able to address the majority of its business issues by 2023, while profiting from China’s reopening.

“I think you’ll see Meta come back really strong this year, on the back of reels and business messenger, to compete with TikTok and other short form video competitors,” Sorrell told CNBC on the margins of the World Economic Forum in Davos, Switzerland.

“Google had a terrific year last year, and I expect they’ll have a strong year this year. Despite what you’re witnessing in terms of jobs and hiring, Amazon raised its advertising income from $31 billion to $41 billion, and I believe it will reach $100 billion in time.”

He also suggested that the reopening of the Chinese economy would be “huge” for big tech firms, pointing out that outbound Chinese business, or Chinese companies expanding their businesses abroad, has historically been the second-largest profit center for companies like Meta, Amazon, and Alphabet’s parent company Alphabet.