What Analysts Are Saying After Facebook’s Dismal Q2

Facebook Inc. (NASDAQ: FB) released second-quarter financial results after markets closed Wednesday, and it was absolutely catastrophic. While the top- and bottom-line results were more or less in line, there were more issues with user growth under the surface. Analysts had a chance to review this report and were reasonably disappointed.

24/7 Wall St. included some highlights from the earnings report, as well as what analysts are saying about Facebook after the fact.

The social media giant said that it had $1.74 in earnings per share (EPS) and $13.23 billion in revenue. That compared with consensus estimates from Thomson Reuters of $1.72 in EPS and $13.36 billion in revenue, as well as the $1.32 in EPS and $9.32 billion in revenue posted in the same period of last year.

Daily active users were 1.47 billion on average for June 2018, an increase of 11% year-over-year. At the same time, monthly active users were 2.23 billion as of June 30, 2018, an increase of 11%.

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Mobile advertising revenue represented roughly 91% of advertising revenue for the second quarter of 2018, up from about 87% of advertising revenue in the second quarter of 2017.

Here’s what analysts had to say:

• Wedbush reiterated a Buy rating with a $250 price target.
• Monness Crespi & Hardt has a Buy rating and lowered its target to $205 from $225.
• Citigroup maintained a Buy rating and lowered its price target from $220 to $210.
• Cowen reiterated an Outperform rating and lowered its target to $200 from $235.
• KeyCorp reiterated a Buy rating and lowered its target price to $215 from $245.
• BMO Capital Markets has a Market Perform rating and a $190 price target.
• Morgan Stanley has a Buy rating and lowered its price from $215 to $185.
• Goldman Sachs has a Buy rating with a $205 price target.
• Nomura downgraded it to Neutral from Buy and lowered its target to $183 from $228.
• JPMorgan has an Overweight rating and lowered its target price to $205 from $242.
• Stifel maintained a Buy rating and lowered its price target from $242 to $202.
• Credit Suisse maintained an Outperform rating and lowered its target to $225 from $265.

Shares of Facebook were last seen down about 19% at $175.83, with a consensus analyst price target of $233.08 and a 52-week range of $149.02 to $218.62.

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