Facebook received some lukewarm news on Wall Street courtesy of analyst Jason Helfstein of Oppenheimer & Co., who reiterated an “outperform” rating on the social network’s stock and lowered his target price to $32 per share from $33.
It’s been a rough week thus far for Facebook Co-Founder and CEO Mark Zuckerberg, as Portfolio Chief Investment Officer Lee Munson called for new leadership at the social network, while posters depicting a beaten-up Zuckerberg started appearing around New York.
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.
Facebook shares were involved in some large transactions in recent days, with moves by Chief Operating Officer Sheryl Sandberg, board member Peter Thiel, and Russian Internet company Mail.ru Group making the news.
Facebook Exchange has been taking a beating on Wall Street, but the real-time-bidding ad-purchase platform has made a believer out of Adobe Systems, which reported strong results from a beta test with its Adobe Media Optimizer integrated advertising platform.
While the news from Wall Street earlier this week may not have been good for Facebook, other parts of downtown Manhattan were kind to the social network Wednesday, as U.S. District Judge Robert Sweet dismissed four shareholder lawsuits against the company related to its troubled May 18 initial public offering.
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.
The sentiment on Wall Street following Facebook’s fourth-quarter earnings call Wednesday was more negative than positive, with many analysts pointing to the social network’s staggering spending forecast for 2013 in lowering their ratings.