Facebook Inc (NASDAQ:FB) shares, which gained a little over 4 percent in two sessions and moved into record territory following the release of its second-quarter results on July 26, came in for some punishment on Monday.

Pivotal Research Group downgraded Facebook from Hold to Sell and maintained its year-end price target of $140.

Analyst Brian Wieser attributed the action to the stock's remarkable runup this year and the current market price remaining about 19 percent over his target price as of last Friday.

The analyst highlighted several risks that make him wary about Facebook.

The analyst sees abouding macroeconomic uncertainties, especially concerning public policy issues in the U.S. and many countries around the world.

See Also: Facebook's Revenue Growth Rate 50x That Of Twitter

Potential EC Clamp Down

The analyst referred to expectations from some quarters that the rules could be negative for both Google and Facebook due to the limitations the policy would impose on how both companies collect consumer data and use them for ad targeting.

Other Risks

Concluding, Pivotal said, "if anything, risks have become more pronounced since our peak YE2017 price target of $176, which was issued in early November of 2016 and subsequently reduced."

"We don't think that investors are fully accounting for those risks."