Facebook selloff since Friday a buying opportunity, says Wells Fargo

Wells Fargo analyst Ken Sena views the 9% pullback in shares of Facebook since Friday's close as a buying opportunity. Facebook "now represents among the best values in our coverage despite its higher growth," Sena tells investors a research note titled "Thank Goodness For Instagram." The analyst believes the potential impact on usage and advertising from the Cambridge Analytica data abuse scandal remains "quite manageable." While headline risk may ensue from the congressional and agency interviews, investors should not lose sight of the areas where Facebook is doing very well, particularly Instagram, Sena contends. He sees Instagram becoming a "bigger catalyst within the FB story this year." The analyst's worst-case scenario assumes a 5.5% revenue headwind stemming from user attrition and reduced ad efficacy following the May implementation of General Data Protection Regulation in Europe. Sena does not see the recent news as commensurate with the recent selloff. He keeps an Outperform rating on Facebook shares with a $230 price target. The social media giant closed yesterday down $4.41 to $168.15.