Analysts are not convinced that Facebook can maintain its grip this time. Scott Devitt from Stifel Nicolaus lowered his price…
Analysts are not convinced that Facebook can maintain its grip this time.
Scott Devitt from Stifel Nicolaus lowered his price target on Monday to $ 150 from $ 186, becoming the latest analyst to express skepticism. On November 19, Pivotal Research Brian Wieser repeated his “sell” rating and $ 125 share price, stressing that “the advertiser’s concern about Facebook’s morale is real.”
James Brumley, an analyst at InvestorPlace, said the string of harmful stories is coming out at a time when Facebook’s core products are already losing relevance.
“Not enough people are still interested in Facebook anymore, and they’ve been particularly tired of the same corruption ̵
1; political bickering, an overwhelming number of vanity-driven posts and what feels like aggressive advertising efforts,” Brumley said. “Ask it average Facebook user how they know the site, and the answer is in line with “meh.” That’s not what it used to be. ”
Zuckerberg has a lot to fix.
He needs users to trust that the services they see are real and their data is secure. At the same time, he has to deliver fresh products to keep users engaged and open future growth opportunities. He must be able to recruit and retain talent in the Bay Area, where competition for engineers is higher than ever.
But for investors who have seen the value of their holdings pumped too late, the number one problem today is that Zuckeberg is not responsible for anyone
“There is no one that Zuckerberg has to report to or listen to because he does not make stupid decisions,” said Julie Goodridge, CEO of Northstar Asset Management, which owns 23,500 Facebook shares. “There is no checks and balances. “