By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Shares of Facebook Inc. rose on a
buy rating from Janney Capital, while a sell rating from the same
broker sank Zynga Inc.'s stock on Tuesday.
Facebook (FB) gained 1.4% to $38.35, edging above its initial
public offering price, after Janney Capital analyst Tony Wible
initiated coverage of the stock with an upbeat note citing the
social network's momentum in mobile and other potential growth
drivers.
"We see Facebook benefiting from many of the obvious drivers
like the massive secular move to mobile advertising, the scaling of
recent investments, the consolidation of ad inventory around fewer
publishers, and the growing demand for marketing segmentation and
efficiency," Wible wrote.
On the other hand, social gaming company Zynga Inc. (ZNGA) saw
its stock fall nearly 3% to $2.75 as Wible initiated coverage with
a sell rating, citing "concerns around the next generation game
cycle, casual user fatigue, competition, and marketing
constraints/pressure."
But gains from Google Inc. (GOOG) , which was up a fraction, and
Yahoo Inc.(YHOO), ahead 1%, allowed the tech sector to stay in
positive territory.
On the downside, shares of Hewlett-Packard Co.(HPQ) , Apple Inc.
(AAPL) and IBM Corp. (IBM) fell fractionally.
The Nasdaq Composite Index (RIXF) was up 12 points, or 0.4%, at
3,602. The Morgan Stanley High Tech 35 Index (MSH) and the
Philadelphia Semiconductor Index (SOX) were each up a fraction.
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