Facebook’s shares fell on Wednesday after the company’s stock received its first downgrade since January, according to a report.
“Research firm OTR Global cut its rating to mixed versus positive amid concern that year-over-year growth in advertisement spending moderated in the first quarter of 2018,” reported Bloomberg. “The last downgrade of the stock prior to OTR was made by Stifel Nicolaus & Co’s Scott Devitt in January, before the scandal involving Cambridge Analytica.”
“The company’s first-quarter ad spending will likely rise 19 to 24 percent year-over-year in the first quarter, versus a gain of as much as 30 percent in the fourth quarter, OTR said. Facebook lost 10 percent last month amid concern over the way the company handled its users’ personal data,” they explained, adding that, “OTR is not beholden to traditional industry coverage. The research team uses information gathered through methods including interviews with industry experts, client events and company filing reviews.”
You can read the full report at Bloomberg.