Facebook Inc (NASDAQ:FB) shares slid again on
Wednesday, taking its losses to 15 percent since the day that founder Mark
Zuckerberg made a rare public appearance and talked up the stock. However, the
stock is up slightly today at $19.78, up 0.70%.
Shares in the social networking fell nearly 3 percent
to $19.64, after falling 3.5 percent in intra-day deals.
Investors are more inclined to respond to negative
news about the company rather than positive news. A couple of brokerages had
put out notes expressing caution over its mobile ad business, which has been
haunting the company ever since it made its public debut in May.
“We remain on the sidelines given the lockup
expiration, mobile challenges, and the nascent stage of ROI measurement on the
platform,” wrote analyst Stephen Ju of Credit Suisse, which has cut the target
price of the stock to $24 from $34 and rating it at Neutral.
There was also a report by Bloomberg which said that
just before its IPO in May, the Securities and Exchange Commission had asked
the company for more details on risks associated with its mobile and desktop ad
business.
For a week after Zuckerberg spoke at a technology
conference in San Francisco on September 11, shares in Facebook rose more than
24 percent.
However after that, all the optimism generated by his comments
evaporated and all the old fears about the company have returned with renewed
force.
Meanwhile reports of Facebook's experimental `want'
button on products displayed on its site, is inviting mixed response.
A report in Forbes said that Facebook was turning from
a place where one could socialise freely to a place where they were
increasingly being persuaded to buy stuff or spend money.
After promoted posts (for which users have to pay
money) and Facebook Gifts, the `want' button is another sign that the social
networking site is increasingly caving in to pressure from advertisers to raise
revenues.
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