FILE PHOTO: 3D printed Facebook-logo is shown in front of the listed cyber-code in this image is 22 March 2016. REUTERS/dado Ruvic/Image/File Photo
(Reuters) – Short-seller Citron Research on Wednesday backed Facebook Inc., saying the stock could hit $160 in 2019 as the company’s revenue and the user base have seen little impact from the data reported scandals and privacy aspects of this year.
Shares of the social network rose as much as 4.4 percent to $129.57 after the Citron report. A decrease of 28 percent this year.
“We believe that investors will be rewarded by the shift of the behavior of the user to Instagram to shopping and the personalization of the commerce process,” said Citron’s research note here.
Citron, said Facebook has come a long way, turning from the short-seller of a “one-time skeptic to a big bull”.
“If investors are overly concerned about the short term noise of the personal privacy, and the propaganda, they forget to look at the earnings power and potential of the most advanced advertising tool with a global reach of messages, networks and the future of shopping,” the short-seller said.
Reporting by Sonam Rai in Bengaluru; Editing by Anil D’silva