Can the perception of Facebook change?

Analysts on Facebook’s development have been a bit confused, says Peter BoKiaer, an expert at Saxo Bank, a Danish-based global investment bank.
So far, analysts have made only a few minor, polishing changes to their EPS estimates for Facebook in 2012. However, if the QXNUMX results turn out to be fundamentally poor, for example, revenue from mobile applications will not fluctuate, so investors can rightly expect a sharp drop in profit expectations, which have so far proved to be tough. The uncertainty is compounded by the fact that a significant number of Facebook shares that have been blocked so far will become tradable. This in itself puts some pressure on the exchange rate, so overall the risks are still strong.

Since its introduction, the average consensus target rate has dropped from $ 40,6 to $ 33,3. The decline is much smaller than the rate of decline, indicating a strong correlation between analysts ’estimates of earnings and the target rate: both figures declined in small increments. Investors are also advised to expect that the target exchange rates will also fall in line with profit expectations if the III. quarter is not disappointing. 

Since its public introduction, the most pessimistic analysts have been able to accurately map the evolution of Facebook stock prices. The “weak” side estimate has recently dropped from $ 20,3 to $ 15, leaving an even bigger gap between the negative and the optimistic camp.

 

Source: Press release