Schibsted pulled down by Facebook’s Marketplace?

10 Oct 2016

The Schibsted share price has fallen sharply since the start of the month. Last week alone the A share was down 11.5 percent from trading start to finish. And over the last 30 days, the share dropped 19.4 percent. In the same period, the index in Norway of which Schibsted is part, was up 1 percent.

In June, some analysts still set 300 NOK as a target price for investors. Now the B share, the one with less voting power, is already under the critical 200-NOK mark, and traded at NOK 197 on Friday.

Market commentators have described the sharp drop in the Schibsted share price as a response to the presentation of Facebook’s Marketplace on Oct. 3. Of the big classified companies, Schibsted got hit worst. Last week, both Axel Springer and Naspers were down, but just around 2 percent in each case.

Schibsted held investor days in New York and London on September 27 and 28. Sometimes this kind of presentation gives analysts second thoughts about a company. Goldman Sachs, for example, took Schibsted from its “conviction buy” list last week, but kept the buy recommendation.

This week more analysts will come out and give their views of the Schibsted share. It might be that a few of them think this is a good opportunity to buy. Or, has Facebook Marketplace really scared investors away from Schibsted?

This morning (Monday) Schibsted announced it had bought 61,000 shares at an average price of NOK 197. The official reason for the buyback was given as “(to grow) the number of treasury shares available for use in connection with Schibsted’s ordinary stock- and incentive program for own employees”.

Here is the news release.


Lars Herlin

Lars Herlin is an AIM Group senior analyst for Europe, and our expert on Schibsted. He had a long career in journalism at Expressen, Svenska Dagbladet and VeckansAffärer, and served as managing editor and later managing director of Gotlands Allehanda.