NEW YORK ( TheStreet) -- Facebook (FB) shares tanked today after the world's largest social-networking company said revenue growth slowed in the second quarter and didn't give much of an outlook for the rest of the year.
Plenty of analysts, though, remain bullish on the company.
"Lack of forward guidance put pressure on shares," Sterne Agee analyst Arvind Bhatia said in a note. "However, we think Facebook's market opportunity remains large and the stock should be a core holding in tech portfolios with a long-term horizon."
Bhatia lowered his price target from $46 to $37 (the stock today is around $24), warning the shares could remain volatile quarter-to-quarter, but reiterated his "buy" rating. Increasing adoption of Facebook's Premium Ads and Sponsored Stories should significantly improve the company's monetization, he wrote."Premium Ads and Sponsored Stories generate five to 10 times the engagement and three times the return on investment compared to other ads, according to Facebook," he added. "We think this could create upside potential for results in
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