NEW YORK (TheStreet) -- Shares of Facebook (FB) were slumping in late morning trading on Thursday, after the social media company said during its 2016 third quarter conference call on Wednesday afternoon that its ad load revenue growth rate would slow in the second half of 2017.
The social media company expects ad load to "play a less significant factor driving revenue growth after mid-2017" and for ad revenue growth rates to "come down meaningfully," Facebook CFO David Wehner said on the earnings call. The company also expects 2017 to be an "aggressive" spending year and for capital expenditures to grow "substantially," he added.
The drop in Facebook's stock as a result of these comments is a buying opportunity for investors, Axiom Capital Management Managing Director Victor Anthony said on CNBC's "Squawk Box" on Thursday morning. The firm has a "buy" rating and $160 price target on Facebook.
"I'm not too concerned. I think the pullback is really a gift for investors who have been on the sidelines who have missed the run up," he claimed.
However, this lower-than-expected ad revenue growth guidance is not new, Anthony noted. Facebook also mentioned this deceleration in its 2016 second quarter earnings call this past July.
"We think we're in a good zone on the right ad load and we do think there's opportunity to grow that modestly," Wehner said at the time. "But as we look forward into 2017, we think it will be a less significant factor driving inventory growth."