Although Facebook’s stock value has recovered from its initial downfall to about $25 per share, one analyst sees another dip coming, largely because of the prevalence of advertising on the site. Richard Greenfield, a media and entertainment analyst for BTIG Partners, told CNBC that he is not confident about Facebook’s future on Wall Street, noting that advertising on the social network looks more like spam.
Not long after Facebook introduced a new look for its News Feed, the site started asking users what they think about it. Facebook has been adamant about making sure that user input has led to a better News Feed, and it appears that the process is not done. Richard Greenfield, a media analyst for institutional investment firm BTIG, posted on the company’s blog (registration required) that some users have been surveyed regarding their feelings about the updated News Feed.
Wall Street has not been clicking on the like button for Facebook this week, as analysts Carlos Kirjner of Sanford C. Bernstein & Co. and Richard Greenfield of BTIG lowered their ratings for the social network’s stock.
Facebook announced that it will present its financial report for the third quarter Oct. 23. Much has changed since Facebook’s second-quarter report July 26, when the company reported that it lost $156 million in that time frame, despite an increase in revenue. What will Co-Founder and CEO Mark Zuckerberg say about Facebook’s progress over the past three months?
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.