Analyst Downgrades: Facebook Inc, First Solar, Inc., and Fitbit Inc

Analysts downwardly revised their ratings and price targets on Facebook Inc (NASDAQ:FB), First Solar, Inc. (NASDAQ:FSLR), and Fitbit Inc (NYSE:FIT)

Nov 3, 2016 at 9:28 AM
facebook twitter linkedin

Analysts are weighing in on social media stock Facebook Inc (NASDAQ:FB), alternative energy issue First Solar, Inc. (NASDAQ:FSLR), and wearable tech specialist Fitbit Inc (NYSE:FIT). Here's a quick roundup of today's bearish brokerage notes on FB, FSLR, and FIT.

  • Despite topping Wall Street's earnings expectations for the third quarter, FB is set to lose 5% at the open, after the company warned revenue growth would slow "meaningfully" during the fourth quarter. While the stock did receive price-target hikes from Raymond James and Susquehanna, Deutsche Bank lowered its mark by $20 to $150 -- still an 18% premium to Wednesday's close of $127.17, and in all-time-high territory. While Facebook Inc should remain comfortably higher on a year-to-date basis, the pending drop would result in its lowest open since late July. Option bulls can't be happy about these developments, as call buying has nearly doubled put buying during the past two weeks across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). 
  • FSLR is also lower pre-market despite an earnings beat, after the company announced that pricing issues forced it to abandon a number of contracts, and lowered its 2016 sales forecast. In response, Janney and Oppenheimer downgraded their opinion of the shares to the equivalent of a "hold," while Baird and Goldman Sachs cut their respective price targets to $48 and $36. First Solar, Inc. is now set to open roughly 6% lower this morning, potentially adding to their 38.5% year-to-date loss, at $40.58. It'll be interesting to see if short sellers double down or begin to lock in profits, as roughly one-fifth of FSLR's float is sold short. 
  • FIT is selling off ahead of the open -- down 29% and on track for a record low -- following the company's disappointing forecast for the all-important holiday quarter. Bearish analyst notes have since poured in. BofA-Merrill Lynch and Piper Jaffray were part of this group, both lowering their outlooks to the equivalent of a "sell." It's getting extremely ugly for Fitbit Inc, which -- at last night's close of $12.81 -- had already lost well over half its value in 2016. Amazingly, more downgrades could be in store for the struggling stock, since just one of FIT's 21 covering analysts recommended selling the shares, as of last night's close. 
Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Best stocks for October and worst stocks for October


Special Offers from Schaeffer's Trading Partners