Reuters: Technology News: Facebook hits new low after price target cuts

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Facebook hits new low after price target cuts Aug 31st 2012, 15:31 Tweet Share this Email Print Related News Wall Street falls as Fed doubts knock equities Thu, Aug 23 2012 Wall Street slips after S&P 500 hits four-year high Tue, Aug 21 2012 Apple's market value exceeds Microsoft's during 1999 bubble Tue, Aug 21 2012 Wall Street flat after rally; Apple biggest company ever Mon, Aug 20 2012 Groupon hits low on Evercore downgrade, $3 price target Fri, Aug 17 2012 Analysis & Opinion Questions for Ryan, working for welfare, updates on Olbermann and Facebook Facebook's market meltdown is far from over Related Topics Tech » Media » Facebook » The Facebook logo is seen on a screen inside at the Nasdaq Marekstsite in New York May 18, 2012. Credit: Reuters/Shannon Stapleton Fri Aug 31, 2012 11:31am EDT (Reuters) - Shares of Facebook Inc (FB.O) fell 4.5 percent to a new low on Friday after brokerages cut their price targets on the company's shares, saying several lock-up expirations over the next year will weigh on the stock. Early investors got the green light to sell Facebook shares for the first time on August 16, sending its stock down 6.3 percent and prompting price target cuts. About 243 million shares will become available for trading from mid-October, with November 14 being the big day when more than 1.2 billion shares will enter the market. The company's current free float is about 628 million shares. "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," BMO Capital Markets analysts said in a note. They added that Wall Street sentiment on Facebook is now much worse than advertiser sentiment. The brokerage cut its price target by $10 to $15, 60 percent below the price at which the company's stock started trading on May 18. Media reports said BofA Merrill Lynch, an underwriter to the IPO, cut its price target by $12 to $23. The company's shares 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. (Reporting by Sayantani Ghosh in Bangalore, Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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