Marlene Awaad | Bloomberg | Getty Images
Mark Zuckerberg, CEO and founder of Facebook Inc., listens on Thursday, May 24, 2018, during the Viva Technology conference in Paris, France.
Stifel posted a statement Wednesday that said she had dropped his rating for Facebook shares from "buy" to "hold." The statement that a political and regulatory setback could limit the company's business in the long term.
Stifel said that there is no disadvantage in holding Facebook shares, but the company does not. The company believes the company is what it used to be.
"We believe Facebook will find it hard to get back to what it once was or was expected by investors to be long term," the note said. "We prefer Amazon, Alphabet and Netflix as mega-caps with similar thematic trends and more stable operating environments in the US."