Facebook Incs purchase of fast-growing messaging startup WhatsApp for an eye-popping $19 billion largely won approval from analysts, who said the deal made strategic sense as it will solidify the social networks position as a leader in mobile. Facebook shares closed up 2.3 percent at $69.63 after falling as much as 3 percent in early trading as investors got over the initial sticker shock of the deal 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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