Facebook's recent push to make money may harm it in the long run, and could cause its stock to go as low as $16 per share within a year, according to one analyst.
BTIG analyst Richard Greenfield, lowered his firm's target price for Facebook today, citing concern over Facebook's "aggressive" increase of monetization efforts, particularly mobile ads, according to his report. Facebook's stock opened at $20.40 a share this morning.
Since becoming a public company in May, Facebook has faced increasing pressure from investors to show it's a profitable company. The social network has increased advertising efforts, testing out advertising on third-party sites and apps, working with companies to advertise to already existing consumers and tracking user activity online to retarget ads.
Greenfield writes that he expects Facebook to report higher ad revenues from its third quarter earnings from these efforts, but the increased ads could lead to less users over time. He said mobile ads in particular would take up more space on screens, annoying users and leaving more room for accidental clicks.
"Unfortuna... [Read more]
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