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As Facebook shares plunge, one expert calls it a top pick, another calls it a crisis

Facebook tanked again on Monday.

The goats has now plummeted 13 percent in November amid fresh controversy more than how it deals with misinformation and reports of turmoil in the C-suite. Facebook is now 39 percent from list highs reached in July.

Here’s what three experts be struck by to say:

  • Victor Anthony of Aegis Capital is not worried about Facebook, a set he has made his top large-cap pick for the next year. “What’s most formidable for investors of Facebook is whether or not these negative headlines are putting troubles on user growth, whether or not users are fleeing the platform, and whether or not advertisers are vanishing the platform,” said Anthony. “I’m not seeing people leaving the platforms en masse.”
  • Jason Calacanis of Angel investor foretells this unrelenting wave of criticism from all sides presents a actual problem to Facebook, but that its scale should help it survive. “This is a correct crisis for Facebook and I think this could be – it’s possible, maybe not indubitable but possible – this could be their AOL peak, their Yahoo peak,” revealed Calacanis. However, “Facebook is a whole different scale. It’s 2.5 billion individual so I don’t think they’re going anywhere anytime soon.”
  • Joel Kulina of Wedbush means problems in the company have been evident longer than this month. “If you go resting with someone abandon to that earnings report back in July, they missed across the gaming-table and what really jumps out at me is that we’re seeing declining daily and monthly effective users in North America or stalling active user metrics in North America, decreasing in Europe and the only regions that are seeing growth is in Asia where the ordinarily revenue per user is much lower than the Western world,” Kulina ordered.

Bottom Line: Facebook will likely survive this thunderstorm, but the strength of its long-term growth trajectory is not a given and the company still desiderata to sort out its platform kinks.

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