Dallas, Texas 08/29/2014 (FINANCIALSTRENDS) – The Facebook Inc (NASDAQ:FB) investor community is definitely reeling under the unexpected turn of events, when analysts Janney chose to downgrade the ubiquitous leader of the social networking sector.
The analyst has revised its rating of Facebook, moving it from a Buy to Neutral status. The price target was retained at $82.50.
The analyst substantiated the downgrade as the loss of valuation it read in the social networking site in the coming 12 months.
The rare and unexpected downgrade has definitely tickled some investors into moving away from the otherwise high-net-worth stock.
And looking beyond speculation, there is a clear line of thought now being given to the likely unchartered growth of SnapChat within the Facebook world.
Strong opinions are now being mooted that the chances of SnapChat succeeding and soon replacing the leader of social networking.
In hindsight, one can observe that the reason Facebook (NASDAQ:FB) chose to invest in SnapChat was due to the potential it saw in the growth of this product.
The younger generation are beyond texting out status and more; and are increasingly looking to upload images and snaps which capture the moment better, more comprehensively.
Facebook (NASDAQ:FB) play on SnapChat as the networking service of the future is definitely paying-off.
But the question now being raised is, the investor positioning, if snapchat were to override the current Facebook dominance.
As customers who pay to be featured on the famous social networking site surface, decry the lack of value, there is considerable action at executive and programming end within Facebook to bring better value to the paying customer base. The new customer tracking model has begun to show results for Facebook.