What's PrivCo And Why's It So Worried About Facebook?

This private stock research company we'd never heard of until now just wrote its first ever report on Facebook's stock and calls it problematic.

We just received an alarmist sounding report from startup PrivCo, which we’d never even heard of until now. The private stock research company is covering Facebook’s stock for the very first time and is calling it problematic. Really?

We asked Facebook to comment on this report and a spokesperson said the company could not comment on the report. The social network has a policy of not commenting on matters of speculation.

We’re seeing PrivCo’s report as an attempt to get attention — anything that mentions Facebook tends to get a lot more traction these days, even with the added competition from Google Plus.

PrivCo’s Vice President of Operations Joseph Ranzenbach confirmed via email that this is the first time the company has covered Facebook, although the plan is to continue doing so.

Ranzenback writes that Facebook “faces flattening user activity, new competitive threat from Google Plus, and a delayed initial public offering.”

Last we’d heard from anyone at Facebook, there wasn’t a plan to have an IPO yet anyway — that’s what Chief Executive Officer Mark Zuckerberg told the audience at EG8 in May.

Here’s why Ranzenback thinks Facebook’s got problems ahead:

  • Facebook revenues have grown to $1.92 billion for the first half of 2011, up more than 100 percent versus the first half of 2010.