The bad news related to Facebook stock continues to roll in, with analysts for two of the social network’s largest underwriters, Morgan Stanley and J.P. Morgan, lowering their price targets, according to reports.
The Wall Street Journal reported that Morgan Stanley Analyst Scott Devitt dropped his price target for Facebook for the next 12 months from $38 per share to $32, warning that it could drop to as low as $17 per share. Devitt wrote that users would see fewer advertisements and future users will likely be less engaged, the newspaper reported.
And Devitt’s counterpart at J.P. Morgan, Doug Anmuth, slashed his year-end-2013 target price by one-third, from $45 per share to $30, according to the Journal, with the analyst adding that he expected revenue from games to slide.
Facebook closed at an all-time low of $18.06 per share Friday, and at the time of this post, it was trading at approximately $17.72.
Readers: What must Facebook do to reverse this slide?
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