07. December 2018 11:32 AM IS
The losses of Facebook Inc. become a gain for other companies.
Concerns over the falling profit margins of the social media giant and the bad reputation have sparked 93 US investment funds According to the research firm Lipper
Facebook's share price was around 35 percent higher than its peak lowered.
The sale of fund companies including Fidelity Investments, The Hartford and Putnam Investments combined for a total of nearly 1
Funds that have dumped Facebook and whose stocks have boosted the broad US market in the last two years now favor investments ranging from payment companies like Visa Inc. and Worldpay Inc. to consumer companies like PepsiCo Inc. and CEO's Warehouse Inc. are rich because they expect the social media company's problems to continue as it leaves its era of rapid growth.
Facebook was shattered earlier this year by disclosures that personal information from up to 87 million users may have been inappropriately shared with political consulting firm Cambridge Analytica.
"First quarter 2018 disclosures on privacy issues and growing global concerns about data security and the potential for increased regulation made it difficult to impede the necessary remedial investments. Some of these issues we expected to increase earnings growth in Jim Hamel, S. Portfolio Manager of the Artisan Global Opportunities Fund.
The Hamel fund, which had dissolved its position in May, made a profit of nearly 400 percent on its IPO in May 2012 when it went public in May 2012. The price was $ 38 per share. Hamel said he has used the profits to build positions in the fast-growing global digital payments industry, such as Worldpay, whose shares have risen 12 percent year-to-date.
Greg Woodard, Managing Director of Manning & Napier, said His company, which began buying Facebook at around $ 20 a share in November 2012, sold all of its Facebook shares this year as part of a broad departure from cyclical technology company.
Facebook's latest forecasts have underpinned the margin reduction we've had. It started to get worried, and when we looked at price and our future growth expectations, they did not meet the market's forecasts, "he said.
Woodard said its company has added positions to software developer EPam Systems, PepsiCo, a global beverage company, and has further expanded its position in Amazon.com Inc. at Dips.
"Broken" Stock?  While Facebook is now trading at a more attractive valuation Following the sharp decline in the share price the question of its ability to maintain and accelerate its growth rate is set to become unparalleled in a land of growth between a growth stock and a fast-expanding investor appeals and value leave stocks that appeal to investors who n Look for companies that trade at a discount or attractive dividends.
"When a company is put into the penalty bank by a growth investor, it's hard to come out," said Todd Rosenbluth, director of research fund research at the independent research firm CFRA. "When a stock is perceived as a broken growth stock, it loses its appeal, whereas a falling stock price for a value stock often makes it more attractive."
Wooding, Manning & Napier's fund manager, said his company would not do this Re-buy Facebook shares into its growth strategies and instead turn the company into a fund focused on "companies that need to repair themselves" if he would buy it again. 19659004 "to be much lower," he said. "The gap is not worth putting a number on it."