NEW YORK (TheStreet) -- Facebook (FB) shares slipped in Monday trading after the social network agreed to purchase Israel-based mobile analytics and data management firm Onavo. Facebook shares were 0.31% lower to $48.96 as of 1:10 p.m. New York time, lagging the S&P 500 which was down slightly, losing 0.01%.
The acquisition is in line with Facebook's initiative Internet.org which seeks to expand the Web's reach to unconnected regions to the next 5 billion users.
In a company blog post, Onavo founders Guy Rosen and Roi Tiger said, "[We] hope to play a critical role in reaching one of Internet.org's most significant goals -- using data more efficiently, so that more people around the world can connect and share."
Facebook will appropriate Onavo's Tel-Aviv office space, converting it into the company's first Israeli office.
Deutsche Bank reaffirmed its "buy" rating and $62 price target and JPMorgan reiterated an "overweight" rating on shares of the social networking giant.
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."