Investing.com - Shares in Facebook were down for a third day on Tuesday, following a report by Reuters that an analyst at Morgan Stanley, the lead underwriter for last weeks IPO, cut the outlook for the social-network company's revenue just days ahead of the launch.
The stock was trading at USD31.52 in early U.S. trade, down USD2.51, or 7.43%. On Monday, the stock dropped to USD33 in early trade, falling well below the USD38 of the initial public offering, before trimming back losses to settle at USD34.03.
Reuters said the cut surprised many potential investors, coming so close to the IPO.
The report said that the cut came after Facebook released an updated prospectus ahead of the share sale that warned about revenue-growth challenges presented by a shift to mobile devices.
Meanwhile, U.S. markets were mixed as investors looked ahead to the outcome of a European Union summit on Wednesday, amid speculation that leaders may agree on fresh measures to tackle the crisis in the region.
The Dow Jones Industrial Average dipped 0.07%, the S&P 500 index added 0.30%, while the Nasdaq Composite index gained 0.25%.
Google saw shares decline 0.85% after completing its acquisition of Motorola Mobility for USD12.5 billion.
Meanwhile, financial stocks were broadly higher. Shares in JP Morgan jumped 2.03% and Citigroup climbed 1.43%, while Bank of America and Goldman Sachs rose 0.73% and 0.32% respectively.
Other stocks in focus included Dell and Take Two, scheduled to report earnings after the closing bell.
The stock was trading at USD31.52 in early U.S. trade, down USD2.51, or 7.43%. On Monday, the stock dropped to USD33 in early trade, falling well below the USD38 of the initial public offering, before trimming back losses to settle at USD34.03.
Reuters said the cut surprised many potential investors, coming so close to the IPO.
The report said that the cut came after Facebook released an updated prospectus ahead of the share sale that warned about revenue-growth challenges presented by a shift to mobile devices.
Meanwhile, U.S. markets were mixed as investors looked ahead to the outcome of a European Union summit on Wednesday, amid speculation that leaders may agree on fresh measures to tackle the crisis in the region.
The Dow Jones Industrial Average dipped 0.07%, the S&P 500 index added 0.30%, while the Nasdaq Composite index gained 0.25%.
Google saw shares decline 0.85% after completing its acquisition of Motorola Mobility for USD12.5 billion.
Meanwhile, financial stocks were broadly higher. Shares in JP Morgan jumped 2.03% and Citigroup climbed 1.43%, while Bank of America and Goldman Sachs rose 0.73% and 0.32% respectively.
Other stocks in focus included Dell and Take Two, scheduled to report earnings after the closing bell.