FILE PHOTO: The logo of Facebook is seen in Davos, Switzerland Januar 20, 2020. REUTERS/Arnd Wiegmann
(Reuters) – Shares of Facebook Inc (FB.O) fell 7% on Thursday after the social media giant posted its slowest quarterly growth since its market debut as expenses mount and warned of continued stagnant growth.
The dire forecast prompted six Wall Street analysts to cut their price targets with Pivotal Research reducing its own target by $30 to $215.
Pivotal analyst Michael Levine, who downgraded the stock to “hold”, said he expected cautious commentary around the first quarter of 2020 and a better result for the fourth quarter.
Chief Financial Officer David Wehner said that the pace of expansion will slow further in the first quarter of 2020.
Shares of the company fell 7.5% to $206.56 in trading before the bell and are set for their worst day since June 3.
However, MKM Partners argued that the negative commentary was not sufficient enough to alter investor opinion on the…
Source Reuters Tech News