Another Analyst Drops Facebook Target Price
Damned if you do, damned if you don’t: Facebook’s “aggressive” monetization efforts were the main reason cited by BTIG Analyst Richard Greenfield for lowering his firm’s target stock price on the social network to $16 per share.
Damned if you do, damned if you don’t: Facebook’s “aggressive” monetization efforts were the main reason cited by BTIG Analyst Richard Greenfield for lowering his firm’s target stock price on the social network to $16 per share.
Facebook went public May 18 at $38 per share but quickly plummeted, opening at $20.40 Monday morning and closing at the same price.
According to CNET, Greenfield wrote that he expects Facebook’s ad revenues to rise in the third quarter due to its monetization efforts, but in the long run, he sees users being driven away, particularly by mobile ads, adding:
Unfortunately, we believe this ramp in advertising is negatively impacting the user experience on mobile devices by adding to an increasingly cluttered — less-useful — news feed.
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