Here's Why Facebook (FB) Stock is Down Today
NEW YORK (TheStreet) -- Facebook (FB) - Get Report stock is retreating by 0.83% to $107.86 in mid-morning trading on Friday, after the company noted that its revenue could be negatively impacted by ad-blocking tools.
Any loss of marketers or reduction of their advertising spending "could seriously harm our business," the social networking company said in a regulatory filing.
A possible deterrent for marketers on Facebook is ad-blocking software, which can be installed on desktop and mobile devices to avoid certain advertisements. The company noted that its ads on computers occasionally have been impacted by ad-blocking technologies.
"As a result, these technologies have had an adverse effect on our financial results and, if such technologies continue to proliferate, in particular with respect to mobile platforms, our future financial results may be harmed," Facebook said in the regulatory filing.
Facebook, which had 1.39 billion mobile monthly active users in September, generated $4.5 billion in revenue for the 2015 third quarter. Roughly 78% of its total advertising revenue came from mobile advertising, according to the regulatory filing.
Separately, TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate FACEBOOK INC (FB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: FB
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