Facebook is a social utility that connects people with friends and others who work, study and live around them.
Facebook Has Lost $35 Billion In Value Since Going Public
Hard to believe that Facebook would be suffering so much now that it is a publicly traded company. After all, before the opening bell on that fateful day, everyone was in love with the company and Zuckerberg was a media darling—even when he is wearing the hoodie.
The stick has taking such a battering since the IPO and is now languishing below the $30 a share mark—$28 to be exact as at this writing. All told the company has lost over $35 billion since going public and Zuckerberg and many others have seen the value of their shares plummet. Instagram which got stock options as part of its $1 billion deal with Facebook has seen at least $200 million wiped off its shares… And so the tumble continues.
Facebook now has a market cap of $79.02 billion; down from the $115 billion that the company opened at during its IPO. According to some analysands, Facebook’s free fall is down to the announcement that the company will be coming out with a phone, and Facebook as we all know, is not a company versed in making anything ‘solid’. That plus the rabid actions of options trading is said to be driving the stock price down.
How long the free fall will continue remains to be seen, but if the stock drops to anywhere near $10 then Facebook even with its present user base will be history. The fact is we may very well see another MySpace in the making—and who could have predicted that?
Is Facebook going down like MySpace? Share your thoughts with us using the comments below.