Shannon Saccocia sees another 15% downside in FB
- Steve Weiss says Facebook is a hated company on CNBC's "Halftime Report".
- Shannon Saccocia sees another 10% to 15% downside in the stock.
- FB tanked more than 25% on disappointing Q4 results earlier this week.
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Meta Platforms Inc (NASDAQ: FB) is still down over 25% from its stock price on Wednesday before reporting its financial results that broadly disappointed shareholders, but these two money managers warn the pain might not be over yet.
Facebook is a hated company
According to Short Hills Capital Partners’ Steve Weiss, user growth is unlikely to pick back up at Facebook because it’s a hated company. On CNBC’s “Halftime Report”, he said:
Facebook is overvalued here. It’s declining users. We’ve always been waiting for people to stop going on Facebook. We’re finally seeing that. But I don’t think it’s going to snap back for users because it’s a hated company. Everybody hates it, and you have too many other options.
Weiss is also not convinced of the company’s dedication to metaverse that he thinks could turn out to be a sinkhole. A day earlier, Ritholtz’ Josh Brown also said it was a mistake on Facebook’s part to change its name to Meta Platforms.
Another $100 billion is on the stake
During the same interview, Boston Private Wealth’s Shannon Saccocia also said a possibility of another 10% to 15% downside in FB was on the table. Such a decline would mean a further $100 billion (approximately) hit to the company’s market cap.
Steve is right. Nobody likes this company. You don’t want to own the stock. So, we could see another 10% to 15% downside from a sentiment and overhang perspective. It’s going to be a tough road for the next couple of quarters with FB, which is why we didn’t add to it on the decline.
On the flip side, however, Mad Money host Jim Cramer still has a positive outlook on the stock. He recommended buying the sell-off in FB and said he had total faith in CEO Mark Zuckerberg in terms of his ability to both navigate the company through Apple’s privacy changes and pull off the metaverse.