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Friday, August 31, 2012

Facebook shares drops further

(Reuters) - Shares of Facebook Inc (FB.O) fell 4.5 percent to a new low on Friday after BMO Capital Markets cut its price target on the social networking company's shares, saying several lock-up expirations over the next year will weigh on the stock.

BMO Capital Markets, which cut its price target by $10 to $15, 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 note.

Shares of the company fell to $18.23 on the Nasdaq on Friday amid heavy trading.

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