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.