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Facebook braced for ‘light’ first quarter advertising revenues


By John Glenday, Reporter

April 5, 2016 | 1 min read

Facebook’s seemingly never ending rise may be about to falter after Deutsche Bank issued a gloomy forecast for the social media giant’s first quarter prospects, suggesting that previously unstoppable growth may be about to slow.

Expectations are now for advertising revenues to grow 53 per cent year on year, slipping back from the 57 per cent jump recorded last year.

The digital juggernaut won’t formally announce its results until 27 April but Deutsche analysts believe that it is set to lose some of its lustre. They write: “Facebook shares are deservedly flying at all-time highs heading into F8, coming off their best quarter in 2.5 years. However, we think investors may have an opportunity to add to positions below current levels after the 1Q results, which may come in light.

“We think investors are extrapolating that the strength from 4Q is secular vs. our view it was well above trend-line and growth rates may revert back lower.”

Despite signs of slipping Deutsche Bank still recommend that investors buy Facebook stock in the belief that shares will continue to rise in the medium term.


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