UPDATE: Stifel Nicolaus Downgrades Facebook to Hold on Heavy Investment Phase

Stifel Nicolaus downgraded Facebook

from Buy to Hold and removed a $31.00 price target. Stifel Nicolaus said, "We have reduced our rating on shares of FB from Buy to Hold. Facebook reported what we view as solid 4Q12 results; ad revenue growth accelerated to 43% ex-FX. Mobile now represents 23% of total ad revenues, up from 14% in 3Q. But the company guided to significant margin compression in 2013, marking a fundamental downshift in the earnings trajectory. The company also downplayed the prospects for some growth initiatives, such as Gifts. With our earnings model totally re-calibrating, it is time to take some profits and evaluate the likelihood of potential earnings upside in future quarters." Facebook closed at $31.34 on Wednesday.