Thursday, September 20

Facebook hits another low after downgrade

The FMHR traders offer reasons why the market is fading despite Ben Bernanke's remarks at Jackson Hole. Meanwhile Facebook's price target gets cut to $15 from $25 at BMO. And Dennis Gartman, The Gartman Letter, offers insight on the commodities rally f...

Shares of Facebook are down again Friday, hitting a new all-time low after BMO Capital Markets cut its price target on the social networking company.

Facebook stock price was lately down 4.4 percent at $18.25. The social network’s share price hit a new low of $18.19 Friday, and is down 52 percent from its May 18 initial offering price of $38.

BMO Capital Markets noted that several lock-up expirations over the next year will weigh on Facebook’s stock price. BMO cut its price target by $10 to $15, and said Wall Street sentiment on Facebook is now much worse than advertiser sentiment.

"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 analysts said in a research note.

Shares of game publisher Zynga, which derives most of its revenue from Facebook, slid 2 percent to just under $3 amid reports that executives Bill Mooney and Brian Birtwistle have left the company amid slowing sales and a weakening stock price.

Reuters contributed to this report.

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