Bitcoin sets a new all-time high above $6,000 >>> READ MORE

Facebook Keeps Breaking the Floor

FB shares drop 4% Friday on ad-revenue worries


Facebook just won’t stop falling.

Shares of Facebook (NASDAQ:FB) were off 4% to around $18.30 early Friday after getting some bad news on the research and analysis front.

BMO Capital Markets’ Daniel Salmon says Facebook is likely to see more weakness in its advertising revenues. In his research, he got negative feedback from two out of every three advertisers, which prompted him to cut his price target for FB from $25 to $15.

Market research firm EMarketer also is predicting a slowdown for Facebook, projecting 2012 sales of $5.04 billion, down from its previous estimate of $6.1 billion. EMarketer says advertisers are far from convinced about the effectiveness of Facebook’s ads. This has become an even bigger problem as the company experiments with its new approaches to mobile.

Bank of America (NYSE:BAC) also piled on Friday, dropping its price target from $35 to a still-optimistic $23.

Friday’s dip to the $18 level puts FB at new all-time lows, just months after going public at $38 per share.

Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC