UPDATE: BTIG Downgrades Facebook (FB) to Sell, Monetization Tension

October 8, 2012 8:40 AM EDT
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Price: $127.92 +0.04%

Rating Summary:
    48 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 5 | New: 0
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(Updated - October 8, 2012 9:04 AM EDT)

BTIG downgraded Facebook (NASDAQ: FB) from Neutral to Sell with a price target of $16.00.

Analyst Richard Greenfield said they have grown increasingly concerned with Facebook's mobile monetization approach. "We see a growing tension between the Facebook user experience and monetization, particularly as the collapse of payment revenues has left Facebook with only one major "lever to pull" – advertising."

The analyst notes that while mobile ads perform significantly better than desktop ads this is driven by the fact that they occupy much more screen and because of "fat-finger" clicks.

The firm cut 2012 revenues to $4.9 billion from $5.0 billion and 2013 from $5.9 billion to $5.6 billion. 2012 adjusted EBITDA was raised to$2.675, alghouth organic adjusted EBITA was lowered to $2.482 billion from $2.539 billion. In 2013, they are adjusted EBTIDA to $3.051 billion, and on an organic basis, reducing from $3.145 billion to $2.971 billion.

For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.

Shares of Facebook closed at $20.91 yesterday.

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