Facebook Inc. (NASDAQ:FB) may finally be hitting bottom on its stock price. Since the stock dropped below $18 a share this week, the company and its stock has received a small flurry of good news that have moved the stock higher – maybe back to a recovery? There is some caution in the midst of this, however, as one of Facebook’s own executives cited in an interview the challenges still facing the social-media company moving forward.
That caution is tempered by some good news of late, as Facebook Inc. (NASDAQ:FB) spiked up Wednesday morning following Tuesday night’s news that CEO Mark Zuckerberg was not selling any shares for at least a year, which had apparently eased some concerns about future lockup dates coming that would unleash millions of new shares into the market. Zuckerberg ‘s shares were locked up but were eligible to be sold by the end of this year, and he holds a controlling 57-percent stake in the company. Following that news came the report Wednesday morning that two analysts at Jefferies have instituted a “buy” rating and a $30 price target on the stock.
In the analysts’ note, they wrote, “With a potent mix of unprecedented scale, high engagement, and social + behavioral targeting, we think Facebook is must-buy media for marketers as they follow users online. … Lockup pressure looks inevitable through (December) But expansion into other business areas also looks inevitable, and at the current price investors effectively receive this optionality for free.”
Investors will certainly be wary, but they also could be ready to buy now and make a bet that Facebook Inc. (NASDAQ:FB) stock is primed for a rally. This may likely include hedge-fund manager George Soros of Soros Fund Management.