Facebook Existential Moment Begins With Analysts’ $30-$50 Spread
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Analysts who broke away from the herd and told investors to avoid Facebook Inc., the biggest initial public offering ever by a technology company, are looking like heroes after the stock plunged.
The social networking site lost 19 percent through yesterday to $34.03 after opening at $42 on May 18. That’s consistent with warnings from Richard Greenfield of BTIG LLC and Brian Wieser of Pivotal Research Group LLC, who says the stock will slip as low as $30. It left five firms with bullish calls predicting an average rally of 36 percent and one, Tom Forte of Telsey Advisory Group, saying shares may rise 47 percent to $50.