Facebook Inc (NASDAQ:FB) Shares Tumble 6% on Competitor’s Bleak Outlook


Shares of Facebook Inc (NASDAQ:FB) have taken a huge hit today, a day after celebrating their 12th birthday. While the stock continues to lose much of last month’s gains, today’s downfall appears to have nothing to do with he company itself, but rather a competitor.

That’s right, LinkedIn (NYSE:LNKD) shares have fallen over 42% today after the company issued much lower than expected guidance for Q1 2016. This has in turn negatively affected shares of Facebook Inc (NASDAQ:FB) as well, since investors see the two companies as competition. The question that remains is, “is this negative movement on Facebook’s behalf justified?” Probably not.

Investors are looking at a slow down with LinkedIn profits as a sign that Facebook too may see a similar slowdown in the months to come. However, we must keep in mind that Facebook and LinkedIn, although they are both social networks, deal with a totally different type of audience, as well as a completely different set of advertising clients. Facebook, recently reported tremendous numbers just a little over a week ago, so a negative report from LinkedIn, shouldn’t really have much of an effect on the company. Investors apparently feel otherwise though, with shares falling quite significantly.

The stock is down 6.24% or $6.9 following the news, hitting $103.59 per share. About 53.61M shares traded hands or 46.64% up from the average. FB has risen 27.13% since July 1, 2015 and is uptrending. It has outperformed the S&P500 by 34.43%.

From a total of 34 analysts covering Facebook (NASDAQ:FB) stock, 33 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 $170 while the lowest target price is $88. The mean of all analyst targets is $125.06 which is 20.73% above today’s ($103.59) stock price. Facebook was the topic of 66 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Piper Jaffray maintained shares on January 28 with a “Overweight” rating. Suntrust Robinson maintained shares with a”Buy” rating and a $120 target share price in their report from a January 25. Stifel Nicolaus maintained FB stock in a recent report from January 28 with a “Buy” rating. Morgan Stanley maintained the rating on November 5. Morgan Stanley has a “Overweight” rating and a $120 price target on shares. Finally, FBR Capital maintained the stock with a “Outperform” rating in a report they issued on a January 28.

The institutional sentiment increased to 1.73 in Q2 2015. It’s up 0.01, from 1.72 in 2015Q2. The ratio is positive, 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 buys, and 34 sales for a total of $157.58 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 $312.32 billion. The Firm is engaged in developing products that enables users to connect and share through mobile devices and personal computers. It has 80.31 P/E ratio. It offers various services focused on people, marketers and developers.