Anastas Gegov

Is Facebook, Inc. (NASDAQ:FB) Suffering From Ratings Downgrade

by Anastas Gegov August 28, 2014

Facebook, Inc. (NASDAQ:FB, FB message board)’s stock recently made a leap from around $70 per share to $76 per share, following its Q2 results. This happened in mid-July and the ticker struggled to maintain its positions afterwards, but has been steadily rising since the beginning of the month.

 

The negative and positive sessions have been taking turns, with recent news suggesting that we might see another period of descent. Janney Capital Markets downgraded the stock of Facebook from “buy” to “neutral” recently and we this might be the reason for the ticker’s performance in the past sessions.

 

After reaching a price of $75.9601 in Tuesday’s session the stock slid 1.75% the following session and closed at $74.63. The volume was average and the 36 million shares that changed their owners generated $2.7 billion in daily trade value in yesterday’s session.

 

The company itself is showing some impressive results and the growth is obvious. The revenues are exceeding the growth average of the industry which is 19.9%. Here are the numbers of prime interest from the Q2 report.

 

  • cash: $4.3 billion
  • current assets: $15.5 billion
  • current liabilities: $1.2 billion
  • total liabilities: $2.4 billion
  • quarterly revenues: $2.9 billion
  • net income: $791 million

 

Facebook has also turned its attention to clickbait content on the website and is making plans for dealing with it the proper way. They are looking into the “attention minutes” that posts receive, rather than the clicks, which will surely benefit people who want to advertise through the social media.

 

We know that FB isn’t the only one looking for a change in order to continue its booming growth. Twitter, Inc. (NYSE:TWTR) also stirred things up a bit by going Facebook style and changing their algorithm, so that it now also shows tweets coming from users that you have not followed, but are favorited by the ones you do.

 

Surely, there is a lot of catching up to do for TWTR, but both companies are showing impressive growth in the first two quarters of this year.

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