Already mired in controversies, Facebook should brace itself for another tough year as its revenue growth faces risk due to increased scrutiny by marketers, according to Pivotal Research analyst Brian Wieser.
In a note published in MediaVillage, Wieser maintained his "sell" recommendation on the company's stock. "On a negatively revised price target for 2019, we maintain our Sell recommendation on Facebook as we think downside risks on higher costs and management changes are more pronounced now vs. before...," Wieser said, while questioning how Facebook plans to win back advertiser faith.
Pivotal estimates that Facebook made between $5 billion and $7 billion from China in 2018, and that might also be a problem this year if economic weakness continues in China, a CNBC report said.