• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Tennessee linebacker Arion Carter was suspended over a $427 flight—now he's donating that amount to charity for every tackle he makes this season

2

Current price of silver as of Monday, September 8, 2026

3

Kevin O'Leary says Steve Jobs taught him to focus on 3 things a day—and small talk or a family phone call is just noise getting in the way

1

Tennessee linebacker Arion Carter was suspended over a $427 flight—now he's donating that amount to charity for every tackle he makes this season

2

Current price of silver as of Monday, September 8, 2026

3

Kevin O'Leary says Steve Jobs taught him to focus on 3 things a day—and small talk or a family phone call is just noise getting in the way

Why Bargain Hunters Are Steering Clear as Facebook Shares Crater

By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
July 26, 2018, 11:35 AM ET
Google source logo
Add Fortune on Google for similar content.

Facebook shares have been in the tank since the company released its earnings Wednesday afternoon. And Thursday hasn’t offered any relief. Shares were down nearly 20% in early trading, resulting in a market cap loss of more than $101 billion.

Normally, a drop that steep in a company so high profile would bring out bargain hunters, investors who see the opportunity for a quick profit in a popular stock. So far, though, that’s not happening.

That’s not to say it won’t. Investors could be waiting to see if the stock has bottomed or if more bombshells, such as the proposal to remove Zuckerberg as chairman, are still unexploded. And fence-sitters could believe the stock is still overpriced at $175.

More likely, though, market buzzards are holding off because of how quickly some analysts are turning on the company. Three Wall Street firms, including Raymond James, have lowered their ratings on Facebook and reduced price targets since Wednesday’s disappointing guidance. (The company says sales growth will slow in the third and fourth quarter and cut its long-term profit margins.)

Others, though, are still bullish. While 2018’s gains have been wiped out, as of midday, they believe there’s room for recovery. And slower growth on the primary Facebook platform doesn’t overshadow growth on its other holdings, they say.

“Although the Facebook platform is beginning to see slowing growth, the company’s other products are still seeing dramatic growth,” says Michael Pachter of Wedbush. “Instagram has over 1 billion users, and all Facebook apps (Facebook, WhatsApp, Messenger, and Instagram) have 2.5 billion unique monthly users. We expect Facebook to get back on track by the end of 2019, and expect revenues and profits to grow for many years. In our view, the sell-off is overdone and largely unwarranted.”

Those mixed messages from analysts might be causing some hesitation, but a 20% discount on Facebook stock is likely to be too tempting a gamble for bargain hunters eventually. The question is: When will they see a price point they like?

About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

See full bioRight Arrow Button Icon
Google source logo
Add Fortune on Google for similar content.

Latest in


Most Popular

Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

    Latest in


    Most Popular

    © 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
    FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.