Market Overview

3 Factors Impacting Facebook Shares

Share:
3 Factors Impacting Facebook Shares
Related FB
Gene Munster Leaving Piper Jaffray To Launch VC Firm
Facebook, Google Make Glassdoor's List Of Top 50 Places To Work
Facebook Is a Pass (GuruFocus)

The stock market has been on quite a run since Election Day, with the SPDR S&P 500 ETF Trust (NYSE: SPY) up 2.8 percent. Unfortunately for Facebook Inc (NASDAQ: FB) shareholders, the social media giant hasn’t been in on the fun.

Facebook stock is down 7.5 percent since November 8, and investors are getting restless.

Citi has been getting lots of questions about Facebook’s weakness, and analysts see three major reasons for the lag.

  • 1. High beta names and the crowded internet/technology space has been unwinding after significant outperformance in recent years.
  • 2. Recent data points on Facebook from North America and Europe indicate revenue growth deceleration.
  • 3. Citi has heard reports that Facebook management has been “out marketing” in recent days, but there are “no takeaways yet.”
  • Facebook’s negative momentum has continued Thursday, with shares down another 3.3 percent.

Facebook shareholders can take consolation in the fact that they are certainly not the only high-profile tech investors suffering. Since Election Day, each of the following tech growth stocks have lagged the market:

  • Tesla Motors Inc (NASDAQ: TSLA) down 3.8 percent
  • Amazon.com, Inc. (NASDAQ: AMZN) down 6 percent
  • Alphabet Inc (NASDAQ: GOOGL) down 6.9 percent
  • Netflix, Inc (NASDAQ: NFLX) down 7.8 percent

Latest Ratings for FB

DateFirmActionFromTo
Nov 2016WedbushMaintainsOutperform
Nov 2016UBSMaintainsBuy
Nov 2016JefferiesMaintainsBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: CitiAnalyst Color Analyst Ratings Movers Tech Best of Benzinga

 

Related Articles (FB)

View Comments and Join the Discussion!