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Facebook has earnings hangover; stock hit by analyst downgrades

February 12, 2013|By Jessica Guynn
  • Facebook shares fell on analyst downgrades.
Facebook shares fell on analyst downgrades. (Spencer Platt / Getty Images )

SAN FRANCISCO -- Facebook shares are coming back down to Earth as analysts cool on the giant social network's prospects.

A handful have downgraded the company since it reported fourth-quarter results on Jan. 30.

The stock has tumbled 11% since then. It's off 3% to $27.47 on Tuesday after BTIG analyst Richard Greenfield cut his rating and set a price target of $22.

His downgrade follows that of Bernstein Research analyst Carlos Kirjner. Like other analysts, Kirjner  says that most of the potential upside in the company's advertising business including mobile is already priced into the stock. He lowered his price target to $27.

"Facebook’s mobile inventory and Exchange still present significant untapped monetization opportunities, but much of this upside is now in consensus," Kirjner wrote. “As a result of the more limited upside we see from here and the increased downside risks, we are downgrading Facebook."

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