Facebook Shares Fall Again In Torrid Third Day Of Trading

Huffington Post UK  |  By Posted: Updated: 22/05/2012 15:23

Facebook

Shares in the social network Facebook lost more than 8% in value in early trading on Tuesday.

After a difficult day on Monday, during which Mark Zuckerberg's company lost more than 11% of its value, its shares opened down again on Tuesday morning.

Trading on the Nasdaq saw it lose more than 8% before rising slightly to hover around $31.80, down 6.6% .

Facebook shares were valued at $38 each on Friday, when the company floated.

That initial public offering (IPO) valued the company at $104bn, more than Disney and McDonald's - but analysts said its shares would have fallen below their IPO price had it not been for the actions of underwriters.

Overall Facebook shares have lost 16% in value since Friday.

CEO Mark Zuckerberg, who owns 504m shares in the company, has technically lost more than $3bn in net worth over the past four days.

According to some traders the company's relatively low revenue and the tough challenges it faces in expanding the profitability of its advertising operation leave it with low prospects in the short term.

According to a Reuters report on Tuesday, analysts at Morgan Stanley cut revenue forecasts for the company just before the IPO.

That decision may have caused the shares' subsequent weak performance.

According to one investor the decision "freaked people out".

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Shares in the social network Facebook lost more than 8% in value in early trading on Tuesday. After a difficult day on Monday, during which Mark Zuckerberg's company lost more than 11% of its value...
Shares in the social network Facebook lost more than 8% in value in early trading on Tuesday. After a difficult day on Monday, during which Mark Zuckerberg's company lost more than 11% of its value...
 
 
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HUFFPOST SUPER USER
Zurichilux
A liberal conservative controversialist
11:58 AM on 05/23/2012
I feel sorry for anyone who bought these shares. Im a young typical user of facebook, and im telling you now - its going the same way as myspace. Loads of people are leaving it because they realise all their personal info is on display to any government who wants it. Im in the process of tearming my profile down right now.
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the grange gorman
Rachel Corrie is the greatest person since Lennon
07:15 AM on 05/23/2012
Predictable


which mugs bought these shares ?

Most people i know use FB less and less
05:46 AM on 05/23/2012
Na na, na na, na na, na na DOTCOM! BIFF - POW - SLUMP! We've been here before.
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HUFFPOST SUPER USER
Reno Fickler
Head Lifeguard/Dead Sea Marina
02:50 AM on 05/23/2012
I compare FB to the derivatives market. You are basing 'value' on something people 'might' do.
Their only value can be in potential advertising or setting fees on use, which will eliminate a large portion of their users. The brokers with their 'computer trading' made enormous profits the first day and then the smart just stayed away. If I was young Mr Z, I would offer all my shares to one of the huge investment banks for $20 per and spend the rest of my life trying to figure out how many generations of my future family will never have to work.
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HUFFPOST SUPER USER
Ben Wilson
What's the story mourning Tories?
09:43 PM on 05/22/2012
Basically shares fall to to stable low, there's then a drive to up them, leading to more pay-to-do-stuff features ads and pay-for premuim subscriptions and people start leaving in droves and facebook fades into obscurity.
09:14 PM on 05/22/2012
The fact is that although for some reason millions of people obviously enjoy using Facebook, it is not a good money maker, yet. Further ways will be found for it to sell consumer information about you and your browsing/shopping habits, but this may not be that profitable in the long term. And ever-proliferating advertising may eventually turn users off. Perhaps like, say, Spotify, it will launch an ad-free 'premium' service for which you pay a monthly subscription; the ads on the free version may then become so intolerable that most won't be able to resist paying - after all, they feel 'hooked in'. Either way, I wouldn't be surprised if Facebook gets even worse than it already is, as it looks for ways to 'grow'.
08:16 PM on 05/22/2012
Do Facebook actually make anything? I don't think so, so we therefore have a 'virtual company' offering what are turning out to be 'virtual' shares..
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casual agent
Advocate for social justice
07:49 PM on 05/22/2012
Strikes me as these shares are not worth as much as they were cracked up' to be..?
07:20 PM on 05/22/2012
The Bull and Bear really having fun.

Any bets on it going down again tomorrow?
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07:12 PM on 05/22/2012
The young lad better sell sell sell,
Take the money and live happily ever after.
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Mickey Mouse 1
There are no lies or deceit on a chess board.
05:19 PM on 05/22/2012
If you think this fall is bad, just wait until the bear trend in the markets resumes with a vengence. Did you ever wonder what it was like to live in the 1930's? Lol