I guess Facebook does not have as many friends as it thought. With dismal stock prices from the start, Facebook’s initial stock offering started at $38.00 per share and closed its inaugural day of trading at a disappointing $38.23. Only up 23 cents for the day. Investors and technology industry watchers are closely tracking the Menlo Park, Calif.-based company’s shares. The world’s largest online social network was one of the most anticipated initial public stock offerings ever.
In Facebook’s first half of the second day, trading is like someone has flushed the toilet on Facebook’s stock. From the beginning the company’s stock has been swirling downward. Currently at 7:52 AM this morning the stock is down 11.9% to $33.68.
Many analysis have stated that Facebook over-valued it’s worth and overestimated demand for the company’s stock. It is estimated that Facebook will generate revenue of $5.78 billion in 2012. Yet – Facebook’s stock is set to $104 billion, more than 20 times Facebook’s worth.
We will be watching this closely and keep you informed with any updates.
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