Facebook Share Price: Facebook Downgrades, What Now for the Social Networking Giant?

“Simplistically, with a Facebook app on your phone with push notifications, consumers end up touching Facebook far more often as they transition to mobile usage. Yet, the question Facebook has yet to answer is how mobile is affecting aggregate engagement, meaning total time spent on a monthly basis. We suspect the more consumers shift to mobile, the less total time they are spending with Facebook. While the CPMs on mobile are significantly higher (you have to stare at the ads which are quite large relative to the screen size), we struggle to believe Facebook can continue to ramp the ad load on mobile the way they did in Q4 2012.”

That pretty much says it all. Once again, Facebook Inc (NASDAQ:FB) is being forced to prove that its mobile strategy has the ability to pay off in the long run.

What are your thoughts on where FB shares are headed? Do you agree with the decision of BTIG analyst Richard Greenfield to cut his rating?

Check back here for more updates on Facebook Share Price.

DISCLOSURE: I have no positions in any stock mentioned.

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