Technology giant Facebook is in for another tough year as marketers ramp up their scrutiny of the platform, according to Pivotal Research analyst Brian Wieser who has reaffirmed his "sell" rating on the company's stock.
"Facebook's problems seem likely to worsen from here (which is saying something considering the year it had in 2018)," said Brian Wieser in a note Monday, citing the unwitting sharing of consumer data, the threat of legislation and Facebook's role in spreading political messages as issues it is grappling with.
Advertisers are reviewing their relationships with Facebook, said Wieser, who is known for being downbeat on the company. "Advertising seems like the least of the company's worries, although we think that marketers are enhancing their scrutiny of the platform, which may contribute to further deceleration in revenue growth. The toxicity of the company may also deter commercial partners from choosing to work with Facebook, or otherwise make terms less attractive to Facebook."
Wieser maintained his "sell" recommendation on the stock and revised the price down to $113 from $125. According to Reuters data, 40 analysts have a "strong buy" or "buy" rating on Facebook with nine having a "hold" rating. Just three analysts have a "strong sell" or" sell" rating on the company with Pivotal being one of them.
A spokesperson for Facebook was not immediately available for comment when contacted by CNBC.