Facebook: shares drop after downgrade

(CercleFinance.com) - Facebook shares are down over 2% on Thursday after Stifel downgraded the social network company's stock from "buy" to "hold".


In a note to clients, the broker - which maintains its target price of 150 dollars for the share - describes a "company (still) in crisis."

"Facebook's management team has created too many adversaries - politicians/regulators, tech leaders, consumers, and employees - to not experience long-term negative ramifications on its business," Stifel wrote in the report.

Most importantly, consumers and some employees seem to have grown disenchanted with the company," it pointed out.

Facebook shares are currently down 2.6% at 134.4 dollars, underperforming the Nasdaq, which is down just 1.4%.

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