- Shares in Facebook (NASDAQ:FB) have arrested a steep decline, turning up to a 2.4% gain now, after days of fallout from a data-leak scandal at Cambridge Analytica shaved billions off its value and analysts are taking a fresh look at valuation.
- It's trading at more than double average daily volume already. Options are trading heavily; JPMorgan (NYSE:JPM) advocates buying $150 put/$185 call bull risk reversals as it sees a buy opportunity.
- At the current depressed levels, shares present a compelling risk-reward opportunity, Jefferies says, since the data issues aren't likely to hit revenues. From a sentiment perspective, the stock faces some $15 more of downside potential vs. $65 in upside, it says, reiterating a Buy rating and $230 price target.
- Pivotal reiterated a Sell rating this morning, noting "signs of systemic mismanagement," a concern the firm hadn't contemplated until recently, analyst Brian Wieser says: "Investors now have to consider whether or not the company will conclude that it has grown in a manner that has proven to be untenable or whether it needs to significantly improve how it is managed." (h/t Bloomberg)
- Wieser has a price target of $152 vs. current price of $172.16.
- Meanwhile, Fox News reports a meeting between Facebook staff and aides to the House Judiciary Committee has been postponed because of weather, to 9:30 a.m. Thursday.
- Previously: EU proposes tax on U.S. tech giants (Mar. 21 2018)
- Previously: WhatsApp co-founder: Time to delete Facebook (Mar. 21 2018)
- Previously: Report: Zuckerberg, Sandberg skip Facebook employee meeting (Mar. 20 2018)
- Previously: Facebook and social peers keep sinking on spiraling regulatory news (updated) (Mar. 20 2018)
- Now read: Facebook: Politics, Politics, Politics!
Original article