NEW YORK (TheStreet) -- Facebook's (FB) advertising prices on a cost per click basis fell quarter to quarter in the first quarter of 2014, according to a report by ITG Research.
Facebook shares are down 1.6% to $58.11 in trading on Wednesday.
The firm also stated that the social media company's revenue for the quarter will either match or fall short of consensus estimates.
The ITG report contradicts a previous report by Facebook's ad software provider, Nanigans, that stated that quarter to quarter ad prices rose 10% across the board.
TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."
Highlights from the analysis by TheStreet Ratings Team goes as follows: