Facebook Inc (FB) Sees Shares Drop After Class Action Lawsuit Moves to Supreme Court


Back in July of 2014, Viennese attorney, Max Shrems filed a privacy lawsuit against social media giant, Facebook Inc (NASDAQ:FB). In doing so he opened it up as a class action suit, welcoming all non-commercial Facebook users outside of Canada and the United States to join in.

The lawsuit, which claims that Facebook has been in violation of several EU data protection laws, today has been moved to the Austrian Supreme Court. Here, it will be determined if the lawsuit will be able to be handled as a class action suit or not.

The stock is down 2.11% or $2.26 after the news, hitting $104.69 per share. About 6.12M shares traded hands. FB has risen 26.37% since April 22, 2015 and is uptrending. It has outperformed by 27.39% the S&P500.

Out of 32 analysts covering Facebook (NASDAQ:FB), 31 rate it “Buy”, 1 “Sell”, while 0 “Hold”. This means 97% are positive. $155.0 is the highest target while $88 is the lowest. The $122.42 average target is 16.94% above today’s ($104.69) stock price. Facebook was the topic in 57 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Argus Research maintained the stock on November 6 with “Buy” rating. Morgan Stanley maintained it with “Overweight” rating and $120 target price in a November 5 report. Canaccord Genuity maintained the shares of FB in a report on November 5 with “Buy” rating. Credit Suisse maintained the firm’s rating on November 5. Credit Suisse has “Outperform” rating and $135 price target. Finally, Jefferies maintained the stock with “Buy” rating in a November 5 report.

The institutional sentiment increased to 1.72 in Q2 2015. Its up 0.19, from 1.53 in 2015Q1. The ratio is positive, as 63 funds sold all Facebook Inc shares owned while 356 reduced positions. 143 funds bought stakes while 579 increased positions. They now own 1.51 billion shares or 2.84% less from 1.56 billion shares in 2015Q1.

Millennium Tvp Management Co. Llc holds 63.75% of its portfolio in Facebook Inc for 776,552 shares. Sc Us (Ttgp) Ltd. owns 1.04 million shares or 42.21% of their US portfolio. Moreover, Parametric Risk Advisors Llc has 40.65% invested in the company for 7.15 million shares. The California-based Technology Crossover Management Vi L.L.C. has invested 37.88% in the stock. Meritech Capital Associates Iii L.L.C., a California-based fund reported 1.07 million shares.

Since February 25, 2015, the stock had 0 insider buys, and 62 insider sales for $216.83 million 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 $297.09 billion. The Firm is engaged in developing products that enables users to connect and share through mobile devices and personal computers. It has 105.17 P/E ratio. It offers various services focused on people, marketers and developers.