This past year wasn’t kind to Facebook and its investors. The primary story of the year was the huge ‘Cambridge Analytica’ scandal that rocked the social media giant. Head over here for our coverage.
That day Facebook stock’s market cap was slashed by over $30 billion.
Share prices did recover well into July – only to plummet yet again after an awful earnings release, this time by over 20 percent, good for a loss of $120 billion in market capitalization. That earnings statement, second quarter of 2018, saw management revising guidance down on the back of limited growth and that spectre still haunts the firm to this day.
Since then its been a downward trend for FB (NASDAQ:FB), prices are currently down over 38 percent.
Facebook at risk for a 20% slide according to well known analyst
Today a well known Facebook-bear, analyst Brian Wieser of Pivotal Research Group, affirmed a very strong “sell” rating at the stock with a price target of $113 (down from his previous PT of $125). This is down almost 20 percent from today’s closing price of $138 a share.
While Wieser isn’t exactly known for his optimism in regards to Zuck & Co., he does go on to provide his reasoning for the downgrade.
According to the analyst, “The list of problems the company is grappling with is vast, including complicity in genocide, enabling social and political instability in different countries around the world, the unwitting sharing of consumer data and antagonized legislators in the US, the UK, Europe and beyond.”
It’s important to note that most in the financial analyst community are bullish on Facebook’s outlook for the year. 41 analysts currently have a “buy” rating for the company, 8 have issued a neutral hold rating, and 4 – including Wieser – have a “sell” rating. Weiser’s is currently the lowest price target of them all.
Keep your eyes peeled here as we’ll have same-day coverage of Facebook’s financial earnings release later this month.