Potential ad pullback could give Facebook worst month since 2012
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Facebook is heading toward its worst month in more than five years after an analyst report warned of a temporary pullback in advertising and the FTC confirmed it’s investigating the social network’s privacy practices.
The shares fell as much as 6.5 percent Monday in New York, bucking the broader positive direction of the markets and putting them on course for the worst month since August 2012. Facebook has lost about $100 billion in market value in the past 10 days.
Colin Sebastian, an analyst at Robert W. Baird & Co., wrote that the firm’s latest social media survey indicates “some moderation in Facebook usage,” and notes potential for brands and small and medium-sized businesses to “pause some Facebook campaigns until headlines subside.” He lowered his price target to $210 from $225 while saying shares remain attractive for investors with medium to long-term time horizons.
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