Facebook climbs after analysts applaud new product

theflyonthewall.com

Facebook (FB) is rising amid a market sell-off after a number of analysts praised the company's new Home product. WHAT'S NEW: Facebook yesterday announced the launch of Facebook Home, a series of apps that will be built on Google's (GOOG) Android operating system. Home will automatically deliver Facebook status updates and messaging to the home screens of some Android smartphones, Facebook CEO Mark Zuckerberg said yesterday. ANALYST REACTION: A number of analysts reacted positively to Facebook's initiative. In a note to clients today, research firm Argus upgraded the stock to Buy from Hold. Facebook Home will strengthen the company's presence in mobile devices, wrote the firm, which set a price target of $36 on the shares. Facebook's stock has reached a favorable entry point, added the Argus. Similarly, Sterne Agee wrote that Facebook Home could increase the amount of time that people spend on Facebook while using their mobile devices. The new product will be especially appealing to younger users, said the firm, which maintained a Buy rating on the shares. OTHERS TO WATCH: Facebook Home could create more competition for Google (GOOG), which obtained more revenue than any other company from ads on mobile devices last year, according to eMarketer. Facebook was a distant second. Apple (AAPL), whose smartphones do not yet have Facebook Home, could also be impacted by the product. Both companies' stocks have dropped significantly since the beginning of the week. PRICE ACTION: In mid-morning trading, Facebook rose 45c, or 1.6%, to $27.50.

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