Facebook shares could hit USD 160 in 2019: Citron

Shares of the social network rose as much as 4.4 percent to USD 129.57 after Citron's report.

Update: 2018-12-27 06:13 GMT
Buying Facebook ads can widen the audience for such material, but some of those influence efforts may violate election rules and the company's policies. (Photo: AP)

Short-seller Citron Research on Wednesday backed Facebook Inc, saying the stock could hit USD 160 in 2019 as the company’s revenue and user base have seen little impact from the reported data scandals and privacy issues this year.

Shares of the social network rose as much as 4.4 per cent to USD 129.57 after Citron’s report. They are down 28 per cent this year.

"We believe investors will be rewarded by the shift of user behaviour to Instagram shopping and the personalisation of the commerce process," according to Citron's research note.

Citron said Facebook has come a long way, turning the short-seller from a “one-time sceptic to a major bull”.

“As investors have become overly concerned about the short-term noise of privacy and propaganda, they have forgotten to look at the earnings power and potential of the most advanced advertising tool with global reach in messaging, networking, and the future of shopping,” the short-seller said.

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