Facebook (NASDAQ:FB) is down a hefty 5.6% premarket with JPMorgan taking a dimmer view of what may be a sweeping set of changes to the social network's news feed.
That could mean well over $20B off the company's market cap today.
Emphasizing the personal over posts from businesses could easily mean fewer ads in the feeds, though CEO Mark Zuckerberg deliberately didn't mention ads in explaining changes, analyst Doug Anmuth says.
He has an Overweight rating and $230 price target (still 22.5% upside implied).
Meanwhile, Pivotal's Brian Wieser speculates that what it saw as a burgeoning decline in Nielsen's digital consumption rates could have come from the concerns reflected by Zuckerberg's post.
Zuckerberg admitted that the changes might mean some engagement measures (including time on Facebook) could go down in the short term.
And Stifel has downgraded shares to Hold, departing from a few dozen analysts who have the shares at Buy.
January 12th, 2018 at 9:30 am
Good morning!
This girl has only been alive for 30,000 hours – what's your excuse?
Yep, they are just like you and me…
FB caused a pullback but we'll see how things go.
London/Malsg – Yeah, he chickened out.