BUSINESS

Facebook stock follows market, falls sharply 2 weeks after public debut

06/01/2012 11:54 EDT | Updated 08/01/2012 05:12 EDT
NEW YORK, N.Y. - Facebook's stock is falling with the broader market following a weak jobs report that showed the U.S. economy adding far fewer jobs than expected.

Shares of Facebook Inc. fell US$1.68, or 5.7 per cent, to US$27.92 in midday trading Friday.

That's down more than 26 per cent from its initial public offering price of $38. And it's down about 12.5 per cent for the week.

Facebook began trading on the Nasdaq two weeks ago Friday on a day marred by trading glitches and general investor confusion.

The IPO capped the worst week for the U.S. stock market so far this year.

Baird analyst Colin Sebastian started coverage of Facebook's stock Friday with an "Outperform" rating and a target price of $37. The keyword, he says, is potential — in advertising, payments and e-commerce.