Things very well could get worse for Facebook’s stock before they get better. It looks as though the recent wave of analyst downgrades, which began earlier this year, still has further to go. There are a variety of reasons for analysts’ herding behavior, as I explained in a column in early July in which I concluded that “Wall Street’s outlook on Facebook is about to get worse.” In a nutshell, however, the historical pattern is for a downgrade from one Facebook analyst to more likely be followed by another downgrade from another analyst than to be followed by an upgrade. Read More...
Wall Street’s herd behavior means more pressure on Facebook’s stock price
Things very well could get worse for Facebook’s stock before they get better. It looks as though the recent wave of analyst downgrades, which began earlier this year, still has further to go. There are a variety of reasons for analysts’ herding behavior, as I explained in a column in early July in which I concluded that “Wall Street’s outlook on Facebook is about to get worse.” In a nutshell, however, the historical pattern is for a downgrade from one Facebook analyst to more likely be followed by another downgrade from another analyst than to be followed by an upgrade.
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