NEW YORK (TheStreet) -- Facebook (FB) was sent tumbling on Tuesday, bottoming out 6.2% lower to $47.35, as of 3:20 p.m. New York time. The company traded between $47.17 and $50.60 and is lagging the S&P 500 which is down 1%.
Investors, worried over the current political uncertainty in Washington, targeted the year's biggest gainers, including Facebook which is up 77.67% in the year to date.
The government shutdown, stretching into its eighth day, is the result of a stalemate among Congressional leaders to agree on a new budget. Investors are also concerned the government will default on its debt obligations if it fails to raise the debt ceiling by the soft deadline of October 17.
"Many of the recent winners are breaking key levels," said <I>Real Money</I> contributor James "Rev Shark" DePorre in his analysis Tuesday. "It is very likely that many of these stocks will bounce back sharply at the first hint of some sort of Washington deal."
Earlier on Tuesday, financial services company Raymond James downgraded its Facebook rating to "buy" from "strong buy". Analyst Aaron Kessler said that while he retains his bullish stance, Facebook's high valuation called for a downgrade.
TheStreet Ratings team rates Facebook Inc as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate Facebook Inc (FB) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."