Criteo drops after analyst notes loss of Facebook Marketing Partner status - InvestingChannel

Criteo drops after analyst notes loss of Facebook Marketing Partner status

Shares of Criteo (CRTO) are dropping after a Goldman Sachs analyst noted that the company has lost its Facebook Marketing Partner status. CRITEO LOSES FB STATUS: In a research note to investors, Goldman Sachs analyst Heath Terry said recent French press reports, which have been verified by the company, confirm that Facebook (FB) decertified Criteo as a Facebook Marketing Partner on July 1. The decertification means Criteo is no longer referenced as a Facebook preferred marketing partner and will not have access to beta testing new features, according to the analyst. Terry said Criteo indicated that its customized integration no longer fit Facebook’s priorities and, over time, the company expects to shift to Facebook’s standard application program interface. While Terry said he expects the financial impact to be limited in the near-term, he noted that Facebook only represented 4% of Criteo revenue ex-traffic acquisition cost in the second quarter, and, therefore, sees this as a further sign of tightening standards among advertisers and publishers. He kept a Neutral rating on Criteo shares and lowered his 2018-2020 revenue ex-TAC estimates by 2%, on average, to reflect potential pressure to net revenue from Facebook. PRICE ACTIONS: Criteo has dropped about 13% to $22.18 in morning trading.

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