BMO Capital Markets, which cut its price target by $10 to $15, said Wall Street sentiment on Facebook is now much worse than advertiser sentiment.
Bank of America Merrill Lynch slashed its price target for social networking site Facebook ($18.38, -$0.71, -3.74%) to $23 from $35, though it backs its neutral rating. The firm cites more looming lock-up expirations for the cut. "Facebook has multiple lock-up expirations over the next year and recent selling activity on the August lock-up suggests to us the risk of future selling pressure," the firm wrote in a note to clients. It added that the biggest lock-up date is 11/14 (40% of shares eligible for sale), "and we wouldn't expect stock to see buying momentum until December."
We expect investor attention to return to fundamentals after the technical challenges presented by lock-up expirations over the next six months have been absorbed by the stock, Shares of the company fell to $18.23 on the Nasdaq on Friday amid heavy trading.
Shares of game publisher Zynga Inc (ZNGA.O), which gets most of its revenue from Facebook, slipped 3 percent on the Nasdaq.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment