Shares of Google parent Alphabet Inc. and Facebook Inc. were hit hard Tuesday, as part of a broad technology-sector selloff, after Wall Street analysts cut their price targets and warned about further weakness in online advertising sales.
Kessler also cut his 2020 revenue estimates by 14% for Alphabet and by 15% for Facebook, citing weakness in digital advertising as the COVID-19 pandemic has negatively impacted consumer spending. He lowered his 2021 forecasts for Alphabet by 10% and for Facebook by 12%. Deutsche Bank’s Lloyd Walmsley also reduced his price targets, as he expects trends in online advertising to be weaker exiting the first quarter, then fall toward a bottom in the second quarter before beginning a prolonged “uncertain recovery” in the third quarter, that lasts into 2021. His price target for Alphabet drops by 11% to $1,515 and for Facebook falls by 29% to $200.
“Valuation looks stretched across the space on our new numbers , making us less enthused on the 12-month upside from here,” Walmsley wrote.
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Source: BusinessInsider - 🏆 729. / 51 Read more »
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