Facebook shares closed lower in the US Friday and out-of-hours activity is pointing at another move down when the US stock market opens later Monday. The declines come despite a number of analyst ratings increases and as CEO Mark Zuckerberg marks the platform’s 14th birthday.
Facebook shares closed 1.46% lower at $190.28, Friday. That was after the Facebook stock hit an all-time high Thursday.
Analysts adjust Facebook targets
After announcing mixed results last week - profits were good but user growth and usage was less impressive – Facebook analysts have been assessing the potential future of the global social media platform’s stock price.
KeyBanc Capital Markets analyst Andy Hargreaves said in a note to clients, that he had raised his 12-month price target for the Facebook stock to $245 from $220. Hargreaves also reiterated his overweight rating for Facebook shares.
"News Feed changes do not impair the power of the platform. Facebook offers reach, targeting, and ad-unit quality that is difficult to match, and they are the underlying drivers of its growth," Hargreaves wrote in his note.
Morgan Stanley analyst Brian Nowak, meanwhile, increased his Facebook price target to $230 from $215, while also keeping the social media share at overweight.
“In our view, FB remains in control of the pace of its monetization even while aggressively improving/refining the quality (not quantity) of engagement on its platform,” Nowak said in his client research note.
Other price target increases included:
- $230 from $225 per share from Jeffries analyst Brent Thrill.
- $250 per share from $230, according to RBC Capital Markets analyst Mark Mahaney.
- Credit Suisse Facebook analyst Stephen Ju raises his price target to $240 from $220.
Facebook is 14 years old
Following the release of Facebook’s earnings last week, CEO Mark Zuckerberg took to Facebook again to mark the 14th birthday of the platform.
“It's a moment to reflect on how far we've come from that dorm room at Harvard and how far we still have to go to bring the world closer together,” Zuckerberg said in a Facebook post. “And it's a moment to think about what we need to do better.”
“Bringing us closer together with our family and friends matters, and 14 years in I'm proud of what we do and grateful to be a part of something so meaningful,” Zuckerberg added.