By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Facebook Inc. led the tech sector
lower Wednesday after Janney Capital Markets analyst Tony Wible cut
his rating on the social-networking giant's shares, saying that
naturally declining user metrics could affect its share price.
The Information Technology sector of the S&P 500 was down
0.20% Tuesday.
Wible lowered his rating on Facebook (FB) to neutral from buy,
saying that he expects the company's strong performance so far
"will start to face valuation headwinds in 2015 as top line growth,
engagement, and MAU [monthly average users] naturally decelerate."
Wible said this may already be manifesting in the stock's muted
reactions to upbeat earnings results.
Facebook shares fell 1.5% following Wible's downgrade.
Declines also came from Netflix Inc. (NFLX), Hewlett-Packard Co.
(HPQ) and Microsoft Corp. (MSFT). The Nasdaq Composite Index (RIXF)
was near its breakeven point of 4,571 and the Philadelphia
Semiconductor Index (SOX) dipped into the red. (Read more about the
rest of the stock market in Movers & Shakers
http://www.marketwatch.com/storyno-meta-for-guid.).
Apple Inc. (AAPL) was up 25 cents a share at $101.11. A report
from Bloomberg said Apple is preparing to launch an iPad early next
year with a screen that measures almost 13 inches diagonally.
Amazon.com Inc. (AMZN), Yahoo Inc. (YHOO) and Groupon Inc.
(GRPN) also advanced.
Chinese Internet kingpin Alibaba reported increases in its
earnings and sales ahead of its upcoming IPO.
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