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Can Facebook Stock Rise Over 20% in 2019?

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Jan. 14 2019, Updated 9:00 a.m. ET

Notorious short-seller changes its tune on Facebook

According to CNBC, Facebook (FB) stock fell 25% in 2018, making it the worst-performing member of the so-called FAANG stocks, which include Amazon (AMZN), Apple, Netflix (NFLX), and Google’s parent, Alphabet (GOOGL). Amazon stock rose more than 28% in 2018, while Netflix stock rose nearly 40% in the year. Apple fell 7.0%, and Alphabet was mostly flat in 2018.

Facebook stock fell in 2018 as the company battled a wave of privacy scandals, but 2019 could be a year of big gains for Facebook. According to a new report from Citron Research, a notorious short-seller, Facebook shares could hit $160 in 2019, suggesting a potential upside of more than 23% for the stock.

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Controversial data sharing

Citron notes that Facebook’s revenue and user base have been little affected by the data breach and privacy issues the company has faced in recent months. Facebook has been criticized for its practice of sharing people’s data with outside companies, including device manufacturers and a controversial British political consultancy.

Revenue rose 33%

Facebook’s revenue rose 33% YoY (year-over-year) in the third quarter of 2018, its most recently reported period. Twitter (TWTR) and Snap (SNAP) grew their revenues 29% and 43% YoY, respectively, in the quarter.

Facebook exited the third quarter with nearly 2.3 billion monthly active users, many times higher than Twitter’s 326 million monthly active users in the period.

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