Information Provided By:
Fly News Breaks for March 18, 2019
FB
Mar 18, 2019 | 07:50 EDT
As previously reported, Needham analyst Laura Martin downgraded Facebook to Hold from Buy citing three factors that she sees creating a "negative network effect," namely its strategic pivot toward privacy and encrypted messages, the growing risks of regulation and "horrific" events like those recently in New Zealand that hurt Facebook's brand and are difficult to block from the service at a 100% level. She is concerned that strategic pivot, regulatory and headline risks will negatively impact Facebook's valuation more than investors currently believe due to the negative flywheel effect of these factors influencing the exit of more executives, Martin tells investors. Since she believes people are a key competitive advantage of "FAANG" companies, Martin is concerned about accelerating value destruction until senior executive turnover ends, she noted in her downgrade.
News For FB From the Last 2 Days
There are no results for your query FB