NEW YORK (TheStreet) -- Shares of Facebook Inc. (FB) are down by -1.42% to $74.89 as the social media company continues to decline following this morning's ratings downgrade to "neutral" from "buy" at Janney Capital Markets.
The firm lowered its rating on Facebook due to its concerns the company's growth will begin to decelerate, raising valuation worries through 2015.
Janney set a $75.96 price target on Facebook's stock.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Expectations for Facebook's performance are "too high," and could weigh on the company's valuation if "natural deceleration" in top-line growth, engagement, and monthly active users occurs in 2015, MarketWatch reports.
Facebook's shares have grown almost 37% year-to-date, but confidence in the stock is lessening, as shares of Facebook experienced a one-day 1% drop following its announcement it beat earnings estimates for the 2014 first quarter, compared to a 30% one-day rally in 2013 after announcing its second quarter earnings beat, MarketWatch noted.
Separately, 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."