- From the "You don't have to be human to be a bear" file: Flying in the face of a heavily bullish Street, Wells Fargo (NYSE:WFC)'s robotic analyst has made a contrarian tech call by putting a digital Sell sign on Facebook (FB +0.4%) and Alphabet (GOOG +0.8%, GOOGL +0.7%).
- The firm uses AIERA (Artificially Intelligent Equity Research Analyst) to plow through massive number crunching to support human analysts, and AIERA doesn't like what it sees in two of the FAANGs.
- “AIERA’s approach this week appears decidedly more conservative (than last week), as she places a ‘hold’ recommendation on 11 names and even going so far as to place Google and Facebook in the ‘sell’ category,” writes Wells' Ken Sena.
- He's quick to point out that the humans there think otherwise: "Of course, we would reiterate that AIERA remains in test and learn mode, and therefore has no current bearing on our long-term outlooks or ratings (including Facebook and Google, both of which we rate Outperform with $215/$1,250 price targets, respectively).”
- Wells' target on Facebook implies 25% upside, and its Alphabet target implies 26% upside.
- Now read: Why Is Facebook Warning Investors About Revenue Growth?
Original article