Price-Target Cuts Hit Facebook, Twitter, and Snap Stocks

FB and SNAP both hit annual lows in December

by Josh Selway

Published on Jan 3, 2019 at 9:49 AM

Brokerage firm Canaccord Genuity this morning released a note discussing U.S. digital advertising, saying it has a positive view on the industry over the next four years. However, it wasn't all upbeat attention for the names mentioned in the note, including Facebook, Inc. (NASDAQ:FB), Twitter Inc (NYSE:TWTR), and Snap Inc (NYSE:SNAP).

For instance, the analysts in coverage lowered their price target on FB shares to $180 from $185, saying the security could remain range-bound for part of 2019. However, they kept their "buy" endorsement in place on the FAANG stock because they believe recent changes will be good for users and monetization, and that operating margins should bottom this year, which will lead to earnings growth in the coming years.

Facebook is trading up 0.2% today at $135.92. It bottomed at $123.02 on Dec. 24, as it continues to carve out a series of lower highs and lows under the weight of its 20-day moving average.

Canaccord Genuity lowered its price target on Twitter shares to $32 from $34 and maintained its "hold" rating. It waxed pessimistic on monthly and daily average user growth, and cited a "premium valuation" that could make it difficult for the stock to rise.

TWTR is up 1% at $29.09, but still trading just below its recently breached 320-day moving average. The security will hope the $26-$28 area will act as support as it did back in October and April.

Finally, SNAP's price target was lowered to $6.25 from $8, and its rating stayed at a "hold." Canaccord Genuity's wrote that "consensus is too optimistic regarding margin expansion." The Snapchat parent's shares are down 0.4% at $5.79 today, extending their dramatic downtrend that started back in February when they were trading around $20. The stock traded as low as $4.82 back on Dec. 21.

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