"There is too much uncertainty relating to the economic impact of Facebook's pending News Feed changes for us to be comfortable retaining a Buy rating on the stock," wrote Stifel analyst Scott Devitt in a research note, cutting his recommendation to "hold" from "buy. Its revenue is expected by analysts on average to have surged 45 percent in 2017, a rare accomplishment for a company of its size.Some hedge funds used Friday's drop in Facebook's stock to bolster their positions, said Joel Kulina, a senior trader at Wedbush. "Guys were hoping there would be more of a pullback so they could buy more," Kulina said. "They don't think there are any real cracks in the Facebook story. But a sustainable solution to the challenges of the new information ecosystem requires further measures," he said.
Source: Economic Times January 12, 2018 20:15 UTC