Pivotal Research cut its rating on social medial giant Facebook (FB) - Get Report to "sell" from "hold," as the firm believes the company is at risk from a saturated digital ad sector as large companies analyze their marketing budgets.
"We think that the market is looking at upside potential without appropriately considering risks to growth," the firm said in a note to clients, CNBC reports. "With every passing year, digital advertising is closer to a point where the market is saturated."
Facebook's shares fell 0.6% to $171.38 on Monday morning.
More of What's Trending on TheStreet:
- These Are the 5 Worst Tech Stocks to Own
- Watch for the Trading Opportunities That Rebalancing Could Offer Today: Market Recon
- This Why President Trump Can Now Blame Apple for Atlantic's Reporting
- McDonald's Has One Restaurant in Poland That Looks Like the Future of the Golden Arches