Shares in social media giant Facebook (Nasdaq: FB) have plunged 9% since Friday’s close. Details of the 2014 Cambridge Analytica data abuse scandal continue to unfold, while management stays noticeably silent. So- the million-dollar question- is now the time to invest in FB ? Does the stock have juicy upside potential from these depressed levels or is this the beginning of the end?
And if we turn to Facebook’s stock page on TipRanks we can immediately see a slew of recent ratings from four and five-star analysts. Go to FB’s stock page now:
As the screenshot shows there is a clear bullish sentiment- with no recent downgrades and plenty of buy ratings. But let’s take a closer look at what the experts have to say- the good, the bad and the ugly.
The good- thank goodness Instagram!
For top Wells Fargo analyst Ken Sena the recent selloff presents a buying opportunity.
Crucially, he reminds investors not to lose sight of the areas where FB is doing very well. There are three main reasons to be bullish on FB right now:
Specifically, FB’s 2018 revenue could take a hit of approximately 2% to $53.13 billion. But Sena plays this down and calls the figure ‘quite manageable’.He is sticking with his $230 price target (40% upside potential).
Indeed, FB shares should pick back up on earnings results, a reasonable response from the company and the simple passage of time according to five-star KeyBanc analyst Andy Hargreaves. He says buy at current levels and sees big upside potential of 45%.