MENLO PARK, Calif. -- Facebook Inc.'s shares slumped to a record closing price on Friday, this time falling below the initial price range that was set when it began the quest for its stock market debut.
Facebook shed 6.4 percent to close at $27.72, a new low, as the stock was swept down in a broad market retreat. Since going public, Facebook has fallen 27 percent.
On the eve of its hotly anticipated launch May 18, Facebook priced the deal at $38, the high end of its final proposed range.
Facebook's IPO turned out to be highly-controversial, marked by allegations that the company and its underwriters misled investors.
Analysts have also maintained doubts on Facebook's valuation, its prospects in the mobile market and its ability to compete with Google Inc.
But it got a lift Friday when Baird Equity Research initiated coverage with an outperform rating and price target of $37.
"Facebook spawned a social revolution online, and is uniquely positioned among leading web platforms to capture an increasing share of the $500 billion global advertising market, by leveraging its robust collection of data," Baird analyst Colin Sebastian said in a note.
"Despite near-term headwinds from the shift to mobile and sluggish social game trends, we believe Facebook represents an attractive long-term investment in advertising, digital media, payments and e-commerce," he added.
Read more at Marketwatch
Facebook, MENLO PARK, Calif., stock market, Google Inc., Baird Equity Research
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