Facebook Plunges After Slowing Growth Draws Analyst Downgrades

Raymond James, Nomura and UBS cut ratings after earnings
RBC sees ‘best entry point’ for investors amid share weakness

Facebook Plunges 20% at the Open, Wiping Out $120 Billion in ValueSource: Bloomberg

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By Jeran Wittenstein, Moxy Ying, and Gregory Calderone

July 26, 2018 at 9:54 AM UTC

Updated on

July 26, 2018 at 1:41 PM UTC

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Facebook Inc. shares plunged as much as 20 percent as trading opened in New York after revenue and user growth missed estimates, raising concerns on Wall Street and prompting at least three analyst downgrades. New growth drivers such as Instagram “frankly aren’t big enough” to overcome slowing growth and margin pressure over the near term, according to UBS. Other analysts haven’t lost faith in the social-media giant. As Morgan Stanley noted,“Facebook has shown an ability to innovate and execute through previous challenges.”