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Analysts are not convinced that Facebook can retain its grip this time around.
Scott Devitt of Stifel Nicolaus lowered his price target on the title Monday to $ 150 from $ 186 to $ 150, becoming the latest analyst to express his skepticism. On November 19, Brian Wieser of Pivotal Research reiterated his "sale" rating and $ 125 share price, noting that "advertisers' concerns about Facebook's morality are real."
James Brumley, an analyst at InvestorPlace, said the series of damaging stories was coming out at a time when Facebook's core products were already losing their relevance.
"There are not enough people who are still interested in Facebook, and they are particularly tired of the same chore: political quarrels, huge amounts of messages inspired by vanity and what looks like more and more aggressive advertising efforts. "said Brumley. "Ask the average Facebook user how he feels about the site, and the answer goes in the direction of" meh. "That's no longer what it was."
Zuckerberg has a lot to repair.
It needs users to know that the publications they see are real and that their data is secure. At the same time, it must provide fresh products to keep users engaged and open up growth prospects for them. And he must be able to recruit and retain talent in the Bay Area, where the competition for engineers is stronger than ever.
But for investors, who have seen the value of their holdings collapse recently, the main problem today is that Zuckeberg is responsible to no one else than himself.
"There's no one to whom Zuckerberg has to report or listen to to make sure he does not make any stupid decisions," said Julie Goodridge, CEO of Northstar Asset Management, which owns 23 500 Facebook actions. "There are no checks and balances."
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