Wall Street sees sense in Facebook's $19 billion WhatsApp purchase

Facebook Inc's purchase of fast-growing mobile-messaging startup WhatsApp for $19 billion stunned the markets but analysts said the deal made strategic sense as it will solidify the social network's position as a leader in mobile. Facebook shares were down 3.1 percent before the bell on Thursday, representing a loss of about $5.4 billion in market value. At least two brokerages downgraded their recommendations on Facebook to "hold" but the overwhelming majority of analysts remain positive on the stock. Facebook is paying more than double its annual revenue for a chat program that has little revenue.



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