This all seems to be a retreat from the hype….
And a solid look under the covers at the social network which is actually slowly declining in revenue and growth….
Which Morgan-Stanley failed to relay to investors….
The ‘Brand’ seems to taking a beating, eh?
And they are now in the process of changing their ‘timeline ‘ feature further pissing off a segment of their user’s?
from the Washington Post…
Facebook’s stock has plunged after the IPO. It fell $1.09, or 3.2 percent, to $32.94 in late morning trading Tuesday, after dropping as low as $30.98 earlier in the day. The latest price is 13 percent below the IPO price of $38 and values the company at about $91 billion.
Google Inc., meanwhile, is worth nearly $200 billion.
The downward spiral has left some people sitting on big losses and others scratching their heads. After all, nothing fundamental has changed at Facebook in the days since the much-hyped company came to Nasdaq Stock Market with a ticker symbol of “FB.” Facebook still has more than 900 million users, its 28-year-old founder Mark Zuckerberg controls the company, and it is still one of the few profitable Internet companies to go public.
Facebook’s IPO — like Netscape’s in 1995 and Google’s in 2004 — was billed as a milestone moment. Netscape’s offering ushered in the era of the Internet browser. The company’s stock more than doubled in its first day of trading. Google’s IPO heralded the age of search. It posted an 18 percent gain in its stock market debut. Facebook was supposed to offer proof that social media is a viable business and more than a passing fad.
But investors don’t seem convinced. Facebook’s stock closed Monday at $34.03, down 11 percent from Friday’s closing price of $38.23. The investment banks that arranged Facebook’s offering set a price of $38 on Thursday. Although many investors had hoped for a big first-day pop, Facebook’s stock opened Friday at $42.05 and fluctuated between $45 and $38 throughout the day.
For a host reasons, Facebook’s falling share price shouldn’t have been a surprise……