Financial News
- 31 May 2012, 9:03
Facebook Share Price Falls By A Quarter To $30
Facebook's share price has dropped below $30 (£19) for the first time since its much-awaited stock flotation this month - a total fall of 23%.
The stock fell $2.40 (£1.53), or nearly 8%, to $29.40 (£18.75) in midday trading on Tuesday - and has plunged as low as $29.16 (£18.64) at stages in the day.
Facebook Inc began trading publicly on May 18 following one of the most anticipated stock offerings in history.
Its initial public offering saw stock priced at $38 (£24) and raised $16bn (£10bn) for Facebook and some of its early investors. It had valued the company at $104bn - a value that now stands at around £80bn.
The stock's public debut was marred by technical glitches at the Nasdaq Stock Market that delayed trading.
The firm, along with the investment banks that led the IPO, is the subject of at least two shareholder lawsuits.
They allege that analysts at the large underwriting investment banks cut their second-quarter and full-year forecasts for Facebook just before the IPO and told only a handful of clients.
Morgan Stanley has declined to comment. Facebook calls the lawsuits "without merit."
what do you think?
john lonsdale
This comment has been removed for violations of our Terms and Conditions.
ian
It's only money HE HE HEEEEEEEEEEEEEE.
Chris Price
Bye bye Facebook
Michael Hawkins
No surprise here - Face book provides nothing and could go out of fashion as quick as it arrived Too much Hype too little content
Neil Foster
NO such thing as get rich quick
Mike Drouin
TUFF most people i know use BBM much better than facebook ,also has anyone ever responded to any of the adverts , i certainly dont know of anyone taking any notice of them at all, just an inconveniance , face book days are numbered ,as personal devices get more sofisticated .
John Poole
We went through this during the dot.com bubble - remember Freeserve? - shares were issued - value shot up - those who knew sold straight away and the rest of us mugs lost money. Same old story - same old capitalism - some old soak the workers. When will we ever learn?
chris
isn't it just simple gambling? surely people only gamble with money they can well afford to lose? The priciple is that a very large number give a little money to a select few who make alot.That and prostitution go hand in hand. I don't play. i'd say 'soak the mugs' would be more correct.
movvi
This comment has been removed for violations of our Terms and Conditions.
movvi
My post was deleted! Was this because I asked for advice re why I haven't been able to comment on the fire in Derby story?
the massons
Did your post say anything bad about muslims?
Rhys Sage
I dumped Facebook months and months ago. It has reached its zenith. I wouldn't be surprised if Zuckerburg just sold off his shares at rock bottom price and then washed his hands of the whole lot. I certainly would. I doubt I could spend a billion dollars in a lifetime.
Adrian Wagstaff
I foresee Facebook being valued at about £1. Then someone from China might buy it.
Justin Case
What the hell did people expect with this sort of investment????? Only hope banks were not involved or WE will be bailing them out again.....my prediction ...under $15 within one year... Chancellor of the Exchequer...
Justin Case
What thehell did people exopect with this investment...hope no banks are involved or WE will have to bail them out againt...my prediction...under $15 within the next month...signed..The Chancellor of the Exchequer.
Justin Case
This comment has been removed for violations of our Terms and Conditions.
Gavin Nellis
Dont you just love to see rich people lose money
David Wragg
The first paragraph is a complete nonsense - a case of uneducated, unthinking journalism. If the price is in free fall, of course it will drop below any set price for the first time! This just shows what happens when a share issue is either over-hyped or, which is more likely, a herd instinct takes hold on investors and they all crowd in and inflate price at the beginning. Nothing new about this and people should have heeded the lessons of history.
Timmy Turtle
5:30pm on 29/5/2012
Well it was to be expected. To make any money Facebook needs to charge for its service. Even if they charged £1 a month they could theoretically make 100 million a month. But my bet is once you have to pay most users will leave. I use Facebook but pay no attention to adverts. So the question is: how are all those numpty shareholders going to get their money back? They jumped in with both feet hoping to make a quick buck!
David Wragg
3:38pm on 30/5/2012
Right, and it serves them right. Even the dotcom bubble was not without precedent.