Indian Regulators Ask Facebook Inc (FB) to Suspend Their Free Internet Service

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Facebook’s (NASDAQ:FB) free internet service in India is something one would think politicians within the country would love. After all, the greater the number of people within a nation able to access the internet, the better off that country should be, right? Well, not so fast. Today the Telecom Regulatory Authority of India (TRAI) has requested that the social network’s telecom partner, Reliance Communications, suspend Facebook’s free internet program called Free Basics until they are able to submit a compliance report.

While Facebook’s intentions may be good, many critics within India claim that the Free Basics service is hurting net neutrality by offering a tiered-down level of internet for free and then charging those who want the full internet.

“Free Basics is in danger in India. A small, vocal group of critics are lobbying to have Free Basics banned on the basis of net neutrality. Instead of giving people access to some basic Internet services for free, they demand that people pay equally to access all Internet services, even if that means one billion people can’t afford to access any services,” Facebook wrote in a blog post.

The stock increased 0.71% or $0.74 during the last trading session, hitting $105.51. About 19,235 shares traded hands. FB has risen 30.99% since May 20, 2015 and is uptrending. It has outperformed the S&P500 by 33.25%.

From a total of 33 analysts covering Facebook (NASDAQ:FB) stock, 32 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 97% of the ratings are positive. The highest target price is $155.0 while the lowest target price is $88. The mean of all analyst targets is $122.65 which is 16.24% above today’s ($105.51) stock price. Facebook was the topic of 58 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Argus Research maintained shares on November 6 with a “Buy” rating. Morgan Stanley maintained shares with a”Overweight” rating and a $120 target share price in their report from a November 5. Canaccord Genuity maintained FB stock in a recent report from November 5 with a “Buy” rating. Credit Suisse maintained the rating on November 5. Credit Suisse has a “Outperform” rating and a $135 price target on shares. Finally, Jefferies maintained the stock with a “Buy” rating in a report they issued on a November 5.

The institutional sentiment increased to 1.73 in Q2 2015. It’s up 0.01, from 1.72 in 2015Q2. The ratio improved, as 69 funds sold all their Facebook Inc shares they owned while 375 reduced their positions. 126 funds bought stakes while 643 increased their total positions. Institutions now own 1.55 billion shares which is 2.48% more than the previous share count of 1.51 billion in 2015Q2.

Millennium Tvp Management Co. Llc holds 52.76% of its total portfolio in Facebook Inc, equating to 639,552 shares. Parametric Risk Advisors Llc owns 7.97 million shares representing 46.51% of their total US portfolio. Moreover, Sc Us (Ttgp) Ltd. has 41.15% of their total portfolio invested in the company, equating to 1.04 million shares. The California-based Meritech Capital Associates Iii L.L.C. has a total of 37.81% of their portfolio invested in the stock. Duquesne Family Office Llc, a New York-based fund reported 4.09 million shares owned.

Since February 25, 2015, the stock had 0 insider purchases, and 51 insider sales for a total of $203.83 million in net activity. Athwal Jas sold 30,000 shares worth $3.06M. Stretch Colin sold 1,000 shares worth $98,710. Cox Christopher K sold 5,778 shares worth $561,622. Schroepfer Michael Todd sold 31,283 shares worth $3.00 million. The insider Fischer David B. sold 15,000 shares worth $1.43M.

Facebook, Inc. is a social networking company. The company has a market cap of $296.29 billion. The Firm is engaged in developing products that enables users to connect and share through mobile devices and personal computers. It has 106 P/E ratio. It offers various services focused on people, marketers and developers.

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