Facebook stock continues to fall apart

Written by Andre Yoskowitz @ 05 Jun 2012 3:24 User comments (9)

Once again, the Facebook stock continues to fall apart, leading to more and more investor losses.

After opening on May 18th at $42 per share, Facebook has fallen to $26 today, a 38 percent drop since its IPO date.

We reported last week that CEO Mark Zuckerberg was losing $16 million every hour, with his massive fortune falling from $19.7 billion on IPO day to just over $13 billion today.

Facebook, as a company, started with a value of $104 billion but that has since been torpedoed to its current $56 billion valuation which many believe is a lot more reasonable for the social networking giant, which has yet to find a long-standing working revenue model.

Tags: Facebook IPO Zuckerberg stock price

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9 user comments

15.6.2012 17:02

SmaryJerry

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56 billion isn't the valuation. This is only the value of stock on the market. The actually value of the company is still higher.

25.6.2012 19:28

DVDBack23

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Staff Member

Originally posted by SmaryJerry:
56 billion isn't the valuation. This is only the value of stock on the market. The actually value of the company is still higher.

What do you mean the "actual value" is higher than its market cap?

35.6.2012 22:02

hearme0

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Senior Member

Originally posted by SmaryJerry:
56 billion isn't the valuation. This is only the value of stock on the market. The actually value of the company is still higher.

Ridiculous and meritless statement!

Technically the "actual value" as you say is ONLY what someone will pay for it.

IMO......and I'd bet my ass on this one, is that IF Facebook were to go up for sale...it would sell for less than 10 billion.

46.6.2012 12:23

KillerBug

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AfterDawn Addict

Originally posted by SmaryJerry:
56 billion isn't the valuation. This is only the value of stock on the market. The actually value of the company is still higher.

The market cap is more than the company is worth...otherwise the stock would not be falling apart. The market isn't always clear on things like this, but when a stock plummets from IPO and just keeps dropping, it does not take a mastermind to figure it out. Even Facebook doesn't think it is worth the current price, otherwise they would buy back stock until the price started going back up.

56.6.2012 15:14

Dardandec

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Junior Member

Well, i'm still laughing my face off.

66.6.2012 16:57

BM7475

Unverified new user

Originally posted by KillerBug:

Originally posted by SmaryJerry:
56 billion isn't the valuation. This is only the value of stock on the market. The actually value of the company is still higher.
The market cap is more than the company is worth...otherwise the stock would not be falling apart. The market isn't always clear on things like this, but when a stock plummets from IPO and just keeps dropping, it does not take a mastermind to figure it out. Even Facebook doesn't think it is worth the current price, otherwise they would buy back stock until the price started going back up.

Two points, Facebook is only worth what someone will pay and Facebook doesn't have the confidence in itself to buy back stock and stabilize the fall. On a side note we are talking about a company that does not have a solid or long term revenue plan. I don't think the math on any of this is rocket science ....

77.6.2012 09:44

LordRuss

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Senior Member

What he might be saying is... the insider trading may have already bought up/invested in the true value of the stock in the company. Once the public stock hit the market, all the plebes got was this shit we see circling the bowl now.

Buying back failing stock will only play into the hands of of federal investigators once the next earning statements come out. IF those are actually reported correctly.

This is (of course) pure speculation, so those of you mumbling can stand down. However you can throw the that big handle on the 'way-back machine' and remember the dot-bomb crash of the late 90s & see this is simply the same thing trying to happen again.

The public is never going to see the 2nd set of books.

88.6.2012 08:05

Lee66

Unverified new user

Originally posted by kelo29:
I blame Sean Parker

True. Parker has come out and made a hugely critical remark that he is 'bored' with Facebook and is currently putting all his energies into a new random video chat application. Sweet! Made his money and going to move on. Who wouldn't?

914.6.2012 11:30

8686

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Member

Facebook will come and go. Eventually, people will look back and say "I remember Facebook. Wow, now looking back, maybe I shouldn't have shared so much information with the world. It seems so narcissistic . And maybe It wasen't right to post pictures of other people on my profile without their permission." imo

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Facebook stock continues to fall apart

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