Facebook (FB) Ad Boycott Gains Momentum But JPMorgan Sees Little EPS Impact

JPMorgan analyst Doug Anmurth reiterated an Overweight rating and $245.00 price target on Facebook (NASDAQ: FB) as the ADL and NAACP ad boycott gained greater momentum over the past few days w/bigger brand marketers now planning on withholding spending on Facebook properties, all social media during July or in some cases through year-end. The boycott began
~6/17/20 w/civil rights groups such as the and others calling for marketers to pause their FB spending.

The analyst stated "The ad boycott creates near-term risk to shares, particularly as additional brands are likely to join and some marketers are extending it through year-end across social media platforms given a divisive environment into the November election. However, we do not expect significant risk to numbers for FB as many other marketers, especially those DR-driven, will take advantage of potentially lower-priced inventory. FB has endured advertiser crises before – including Cambridge Analytica in March'18 – and marketers returned to the platform".

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 $211.01 yesterday.

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