Wedbush Analyst Says Facebook Trading Down Due To Disappointing Ad Revenue
Speaking to Benzinga, Wedbush Analyst Shyam Patil said that shares of Facebook Inc (NASDAQ: FB) are trading down in the after-hours session due to disappointing ad revenue.
While Patil was still going through the numbers, he noted that all the key metrics beat expectations modestly.
“On the advertising revenue front, which is probably the key revenue line, people may have been looking for a little bit more upside,” he said.
Patil explained that Facebook reported 22 percent sequential growth. While that’s better than the 20 percent estimate, Patil thinks that people were looking for something between 25 and 30 percent.
His sense is that may be why the stock is trading down. Facebook shares closed up 0.61 percent at $76.24, but are now down about 2 percent.
Image Credit: MarketingFacts
Brianna Valleskey contributed to this report.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.