What Wall Street Is Saying About Zuckerberg’s Response to Crisis
- Company response is good first step, but more needs to be done
- User engagement may suffer due to negative headlines
Facebook CEO Zuckerberg Faces Up to Data Scandal
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Analysts are split on what Mark Zuckerberg’s response last night on its data security crisis means for the stock. BofAML’s Justin Post cut his price target to $230 from $265 and said that usage trends may be hurt by the crisis and subsequent negative press. But Piper Jaffray and Cowen advised using the recent selloff as a buying opportunity. Facebook shares are down 2.8 percent pre-market and down about 11 percent this week after Zuckerberg’s statement and his interview on CNN last night.