- Facebook (NASDAQ:FB) is down a hefty 5.6% premarket with JPMorgan (NYSE:JPM) taking a dimmer view of what may be a sweeping set of changes to the social network's news feed.
- That could mean well over $20B off the company's market cap today.
- Emphasizing the personal over posts from businesses could easily mean fewer ads in the feeds, though CEO Mark Zuckerberg deliberately didn't mention ads in explaining changes, analyst Doug Anmuth says.
- He has an Overweight rating and $230 price target (still 22.5% upside implied).
- Meanwhile, Pivotal's Brian Wieser speculates that what it saw as a burgeoning decline in Nielsen's digital consumption rates could have come from the concerns reflected by Zuckerberg's post.
- Zuckerberg admitted that the changes might mean some engagement measures (including time on Facebook) could go down in the short term.
- And Stifel has downgraded shares to Hold, departing from a few dozen analysts who have the shares at Buy.
- Now read: Facebook: Growth Story Still Intact
Original article