Facebook Bulls Cut Projection on Zuckerberg's Instagram Tilt
- Declining revenue growth prompts analysts to cut price targets
- A new focus on video, Instagram Stories present some concerns
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Facebook Inc.’s newest strategy to lead with Instagram and video as the company’s next catalysts of growth has investors buying in, at least for now. Following a mixed third-quarter earnings report, shares of the social network are climbing the most in six months, up 6 percent in early trading Wednesday.
While Wall Street has sounded off on its confidence in the tech giant’s ability to scale, reductions to price targets from Facebook’s biggest bulls reveal some level of concern as Chief Executive Officer Mark Zuckerberg begins to pivot away from a feed-centric platform. At least four analysts have slashed their price targets by $30 or more.