37°C / 17°C
  • Thu
  • 37°C
  • 17°C
  • Fri
  • 36°C
  • 18°C
  • Sat
  • 36°C
  • 20°C
  • Sun
  • 33°C
  • 19°C
  • Mon
  • 34°C
  • 17°C
  • Tue
  • 32°C
  • 18°C
  • Thu
  • 26°C
  • 19°C
  • Fri
  • 27°C
  • 18°C
  • Sat
  • 25°C
  • 18°C
  • Sun
  • 22°C
  • 18°C
  • Mon
  • 23°C
  • 18°C
  • Tue
  • 25°C
  • 17°C
  • Thu
  • 25°C
  • 22°C
  • Fri
  • 26°C
  • 22°C
  • Sat
  • 27°C
  • 22°C
  • Sun
  • 28°C
  • 23°C
  • Mon
  • 27°C
  • 23°C
  • Tue
  • 26°C
  • 23°C
  • Thu
  • 24°C
  • 18°C
  • Fri
  • 22°C
  • 18°C
  • Sat
  • 24°C
  • 19°C
  • Sun
  • 25°C
  • 18°C
  • Mon
  • 23°C
  • 17°C
  • Tue
  • 22°C
  • 18°C
  • Thu
  • 30°C
  • 14°C
  • Fri
  • 31°C
  • 16°C
  • Sat
  • 31°C
  • 17°C
  • Sun
  • 31°C
  • 16°C
  • Mon
  • 31°C
  • 17°C
  • Tue
  • 32°C
  • 18°C
  • Thu
  • 29°C
  • 18°C
  • Fri
  • 30°C
  • 18°C
  • Sat
  • 31°C
  • 18°C
  • Sun
  • 31°C
  • 17°C
  • Mon
  • 35°C
  • 19°C
  • Tue
  • 34°C
  • 21°C
  • Thu
  • 30°C
  • 17°C
  • Fri
  • 31°C
  • 17°C
  • Sat
  • 27°C
  • 16°C
  • Sun
  • 23°C
  • 16°C
  • Mon
  • 23°C
  • 15°C
  • Tue
  • 30°C
  • 13°C
  • Thu
  • 26°C
  • 18°C
  • Fri
  • 23°C
  • 19°C
  • Sat
  • 24°C
  • 20°C
  • Sun
  • 25°C
  • 19°C
  • Mon
  • 24°C
  • 18°C
  • Tue
  • 23°C
  • 18°C
  • Thu
  • 32°C
  • 17°C
  • Fri
  • 33°C
  • 18°C
  • Sat
  • 33°C
  • 19°C
  • Sun
  • 32°C
  • 19°C
  • Mon
  • 33°C
  • 19°C
  • Tue
  • 35°C
  • 22°C
  • Thu
  • 33°C
  • 19°C
  • Fri
  • 35°C
  • 18°C
  • Sat
  • 35°C
  • 19°C
  • Sun
  • 35°C
  • 20°C
  • Mon
  • 36°C
  • 19°C
  • Tue
  • 36°C
  • 23°C
  • Thu
  • 25°C
  • 18°C
  • Fri
  • 27°C
  • 18°C
  • Sat
  • 26°C
  • 17°C
  • Sun
  • 21°C
  • 17°C
  • Mon
  • 21°C
  • 16°C
  • Tue
  • 25°C
  • 16°C
  • Thu
  • 31°C
  • 15°C
  • Fri
  • 33°C
  • 16°C
  • Sat
  • 33°C
  • 17°C
  • Sun
  • 32°C
  • 17°C
  • Mon
  • 32°C
  • 18°C
  • Tue
  • 33°C
  • 18°C

Facebook shares hit new low

Facebook Inc shares fell 4.5 percent to a new low on Friday.

Facebook Logo.
Facebook,Facebook Inc,Facebook IPO,Facebook shares
World

NEW YORK - 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.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus