Shares of Facebook, Inc. (NASDAQ: FB) were lower by more than 6% Thursday morning and Wall Street pros are offering different takes if investors should buy the post-earnings dip.
JMP: Take A Step Back
In Facebook's fourth-quarter earnings report, the company's full-year 2019 costs and expenses rose 51% year-over-year to $46.71 billion. Revenue growth came in below 30% for the fourth straight quarter. But investors should take a "step back" and look at the bigger picture, JMP Securities managing director Ron Josey said on CNBC.
Facebook investors should keep in mind the company is backed by 2.3 billion users, 8 million advertisers, multiple monetization initiatives set to role out, and new businesses that focus on payments, the analyst said.
"There is a lot of opportunity ahead," he said. "Just, for now, it's understandable why the stock is down."
Wedbush: 'Dose Of Reality'
Facebook's slower growth rates seen in the fourth quarter is a "dose of reality" as expectations heading into the report were "massively elevated," Wedbush analyst Joel Kulina said on CNBC. Facebook CFO David Wehner highlighted factors contributing to the deceleration of its business during the conference call and doesn't "sound like a story" that is convincing enough for investors to buy the dip.
Investors looking for exposure to large-cap growth stories would be better off looking at software names, he said. Facebook hit a "hurdle" in its earnings report and it's stock could come under pressure until at least the next earnings report.
Facebook's stock traded down 6.7% to $208.26 at time of publication.