Quantcast

Facebook Stock plunges To New Low

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Aug 17, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

    Joined:
    Apr 5, 2011
    Messages:
    14,605
    Likes Received:
    877
    Trophy Points:
    113
    Facebook Stock Plunges To New Low (click for full article)

    "SAN FRANCISCO - Facebook's stock plunged to a new low Thursday as some of the social networking leader's early backers got their first chance to sell their shares since the company's initial public offering went awry.


    Analysts interpreted the unusually high trading volume as a clear sign that at least a few of the insiders were seizing on a fresh selling opportunity. That is stirring a debate over whether they're simply locking in long-awaited gains on investments made many years ago or bailing out of a company that has lost its luster.


    A breakdown on just how many major Facebook Inc. shareholders sold their stock probably won't be available until next week at the earliest. Securities regulations give them at least three business days before they have to disclose such transactions.


    The information is important "because if you are an investor who has been sitting on the sidelines waiting for a good time to buy the stock, you might decide to stay on the sidelines for a little longer after seeing which insiders decided to sell their stock," CapStone Investments analyst Rory Maher said.


    All told, investors who owned a combined 271 million Facebook shares could have sold their holdings Thursday with the expiration of a ban known as a lock-up period. The restrictions were imposed on a group of venture capitalists, companies and Silicon Valley cognoscente who invested in Facebook during its formative years and sold some of their holdings three months ago when the company went public at $38.


    The highly anticipated IPO had valued the company at $104 billion, similar to those of Amazon.com Inc. and PepsiCo Inc.


    The shares have plunged by nearly 50 percent since then amid concerns about whether Facebook is destined to become a passing fancy and worries about whether it will be able to sell more advertising on mobile devices as users gravitate there.


    Facebook' stock traded as low as $19.69 before bouncing back slightly. The shares closed Thursday at $19.87, down $1.33, or more than 6 percent. The previous low during the day was $19.82 and the previous low for a close was $20.04, both reached Aug. 2


    More than 156 million shares were traded, more than five times the stock's average volume over the past month. Trading in the overall market was lighter than usual."
     
    Last edited: Aug 17, 2012
  2. CatfishRivers

    CatfishRivers Well-Known Member

    Joined:
    Apr 5, 2011
    Messages:
    14,605
    Likes Received:
    877
    Trophy Points:
    113
    Zuckerberg admits Facebook stock ‘painful’ to watch, report says - The Washington Post (click for full article)

    "By Hayley Tsukayama, Updated: Friday, August 17, 9:55 AM

    Facebook shares hit a new all-time low Thursday after early investors got their first chance to sell, dropping the stock price below the $20 mark and extending the losses its seen since the company's $38 debut on May 18.

    The drop makes Facebook the second-worst post-lockup performer among companies that have gone public since January 2011, Bloomberg reported. The worst performer? Facebook buddy and social gaming giant Zynga."
     
    Last edited: Aug 17, 2012
  3. CatfishRivers

    CatfishRivers Well-Known Member

    Joined:
    Apr 5, 2011
    Messages:
    14,605
    Likes Received:
    877
    Trophy Points:
    113
    Facebook workers suffer pain of stock's sharp sell-off - latimes.com (click for full article)

    By Jessica Guynn, Los Angeles Times August 17, 2012, 8:32 p.m.


    "Facebook Inc. is in a world of hurt on Wall Street but its employees are also feeling the sting of the stock's sharp sell-off.


    For many staffers, the precipitous drop means their Facebook stock is not going to yield the returns they hoped, at least not right away. They have had to defer or downsize their dreams of buying a home or a new car.


    "People made life plans and calculations," said a Silicon Valley chief executive who spoke on the condition of anonymity to preserve his relationships inside Facebook. "This is very, very painful."


    And the noisy public criticism of Facebook has become nearly impossible to shrug off, hurting employee morale.


    "These are people who like to win. Now there's this external measure of winning which is difficult to ignore," said one former Facebook employee who also requested anonymity to preserve relationships at the company. "It doesn't feel good."
     
    Last edited: Aug 18, 2012
  4. phoenixskyrider

    phoenixskyrider New Member

    Joined:
    Aug 9, 2012
    Messages:
    15
    Likes Received:
    0
    Trophy Points:
    0
    I have witnessed many people who got addicted to Facebook. From morning to evening they keep on doing something on it. If Facebook ceased to exist tomorrow would it really matter? I think it would make the world a better place ... folks would meet in person to talk again.
     
  5. Labmanmi

    Labmanmi New Member

    Joined:
    Aug 22, 2012
    Messages:
    42
    Likes Received:
    7
    Trophy Points:
    0
    In the end It's Facebook and Zynga together not really where I'd want to invest my money!
     
  6. ChrisG8

    ChrisG8 Well-Known Member

    Joined:
    Aug 4, 2011
    Messages:
    3,846
    Likes Received:
    462
    Trophy Points:
    83
    Ha, I love Facebook and spend about 3 minutes a day there, checking for pictures of my grandchildren and posts from friends. I have a whopping 107 friends if I recall correctly, high school classmates and family mostly. I think it is a very useful service but I have no idea how it will ever make much money, I sure pay nothing for any Facebook services I use.
     

Share This Page