This analyst recommends buying the dip on facebook

American multinational investment bank and financial services company JPMorgan Chase & Co.’s (NYSE: JPM) analyst Doug Anmuth said on Thursday to buy the dip on tech giant Facebook (NASDAQ: FB). The analyst said that despite the ongoing concerns around the company he thinks that there is major upside on the stock.

What Doug Anmuth’s note says:

JPMorgan analyst Doug Anmuth reiterated his rating for Facebook to overweight in a note on Thursday. He recommended the investors to buy the dip in the stock and even said that despite the company being under fire on multiple occasions, there is still major upside in the stock.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Anmuth even mentioned in his note regarding Apple’s recent ad tracking rules and how it may affect Facebook. He said:

“FB’s ad platform consisting of more than 10M advertisers is extremely resilient & although some marketers may want to shift spend away or reduce bid levels at certain times, we believe there are plenty of others who are eager to capture that inventory.”

The tech giants stock has been hurt by the recent development involving the congressional hearing and the impact their platform is having on teenagers. Despite the ongoing development the analyst does not believe there to be much downside from this news cycle. The note said:

“FB has managed through multiple periods of negativity in the past & shares are down 13% from their recent highs (vs. -3% for the SPX). Additionally, FB continues to call for a set of more standard rules for the internet from Congress, though we do not expect that near-term.”

Whistleblower incident

Frances Haugen, former Facebook product manger leaked some of Facebook’s internal research to the public. She said that the company was prioritizing profits over safety.

The documents provided by Ms. Haugen showed how the company’s social media platforms favored the elites and how its algorithm nurtures Discord and even showed how openly drugs and human traffickers are using the its services .

Ms. Haugen singled out Mark Zuckerberg for his control over the company. The Facebook founder controls about 58% of Fcaebook’s voting shares according to an April filing. She said:

“There is no one currently holding Mark accountable but himself.”