Sell Facebook Inc (FB) At These Levels, Says Analyst

Facebook Inc (NASDAQ:FB) has had an active day today, what with the largest share lockup being released today, though the stock price went up. Though the stock has been pretty consistently at or above $20 a share for a while – still nearly half of its IPO price  - and has been showing signs of responding to its mobile challenges, at least one analyst is still bearish on the stock and went on CNBC today to tell the story.

Facebook Inc (FB), JetBlue Airways Corporation (JBLU)

Rich Greenfield, a research analyst at BTIG, was on “Squawk Box” this morning to talk about his firm’s Sell rating on Facebook inc (NASDAQ:FB) stock and its $16 price target. The main concern his firm has expressed has been the company’s continued work on mobile, where CEO Mark Zuckerberg had admitted that his company has been slow to adapt.

“The issue of why you want to short this stock and why we tell clients to sell Facebook at these levels … is really because of the challenge of mobile,” Greenfield said. “It’s not about the lockup, It’s not about technical events. It’s really, as the world shifts to mobile devices, the sponsored stories and ads that you see on Facebook when you’re on your mobile device, is that enough to support current valuation?”

And Greenfield also suggested that the stock has fallen since the IPO even with large growth curves, and he questioned whether those impressive growth numbers just might be running out soon, unless Facebook Inc (NASDAQ:FB) solves the mystery of mobile. ”The challenge for Facebook is, people are assuming that this company can continue to grow 25, 35 percent on the top line over the next several years,” Greenfield said. “I don’t think there is value at $21, $22. At these levels, can it justify its growth rate? We’re struggling to believe that … (so) we’re advising investors to be selling at these levels rather than buying.”

Do you think investors like billionaire Steven Cohen of SAC Capital Advisorsshould consider the advice and weaken their positions until Facebook floors out? Is this stock still a concern? We’d love your comments!

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!