Facebook Inc Receives a Sell from Pivotal Research

By Jason Carr

In a report released today, Brian Wieser from Pivotal Research assigned a Sell rating to Facebook Inc (NASDAQ: FB), with a price target of $152. The company’s shares opened today at $177.06.

Wieser observed:

“We note that these comments were generally consistent with observations we have found recently, which indicates that marketers are unlikely to cut their spending because of concerns about the social ills of social media. However, spending will change if consumer behaviors on those media change, and spending will further be impacted by practical limits to growth in budgets for advertising, which for us remains as a key concern on the growth potential for digital media companies we cover.”

According to TipRanks.com, Wieser is a 5-star analyst with an average return of 10.0% and a 74.0% success rate. Wieser covers the Services sector, focusing on stocks such as Interpublic Group of Companies, Publicis Groupe SA, and Nielsen Holdings.

Facebook Inc has an analyst consensus of Strong Buy, with a price target consensus of $227.79.

Based on Facebook Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $12.97 billion and quarterly net profit of $4.27 billion. In comparison, last year the company earned revenue of $8.81 billion and had a net profit of $3.56 billion.

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