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Long before Facebook shares had their historic decline, two analysts have already suggested that it was necessary to sell stocks.
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Brian Viser, Analyst at Pivotal Research Group "Since last year, he has offered investors to sell Facebook shares." On the other hand Societe Generale's Simon Baker does not give up the idea of selling the shares since 2015, according to Bloomberg data, and Viser also gave a target price of $ 140, about 20% less than 174, $ 78, the lowest price of yesterday, the lowest in history.
– What many members of the investment community missed, was that they viewed growth as infinite – said Viser in an interview with Bloomberg TV, citing digital advertising, adding that this is only one part of a larger story that has not yet been fully played.
For some time, Viser had reasons to worry about the counter-setting. There have been unstable times, including about 20% cancellation for two weeks at the end of March, following the discovery of a scandal in Cambridge. But the jumps have remained more stable in recent months.
The shares closed on Wednesday with a record of $ 217.50, before profits were announced.
It was then that everything changed, especially after Facebook announced the sale and growth of the number of users who had failed expectations. Chief Financial Officer David Vener said the rate of revenue growth would decline in the third and fourth quarters. Most analysts were shocked and often asked managers for further information on how the company's financial future changed dramatically during the conference call.
By Thursday, several analysts have also reduced the rating. Even Aim said that expectations will likely continue to be too big.
– We have not even really guessed the wider management issues that the company has, let alone the FTC penalties that they will likely encounter – explained Viser.
Some analysts, however, remained optimistic.
– Although all this with Facebook will result in several quarters of uncertainty, we believe that a company can make a transition and see potential shortcomings – said KeyBanc analysts.
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