Facebook is a social utility that connects people with friends and others who work, study and live around them.
Facebook Stock Price Ready To Drop Below $18
The Facebook IPO party has crashed faster than anyone can imagine and things look set to get worse. When the company went public in May the offer price was $38; today the price sits just a few shades over $18—mere cents really.
Things are about to get worse because top analysts are writing down the stock. A new report from BMO Capital’s Daniel Salmon is suggesting that Facebook may eventually drop to $15. Salmon’s estimate is based on the fact that the company is failing to adequately monetize its estimated 900 million+ active users. In a recent interview with Bloomberg, Salmon said that “Checks on near-term paid media spending remain challenged.” This bearish outlook means that unless something dramatic happens at Facebook, shareholders may start sell-off frenzy.
It also doesn’t help that as soon as the lock-out period ended for some shareholders. Rather than keep hold of the stock, many dumped millions and this helped to further depress the Facebook share price.
Of course $15 is a massive fall from the dizzying heights of $38 a share. If things do eventually get that bad, it won’t be surprising if Mark Zuckerberg gets the shaft. Many believe that it’s his stewardship that is causing the operational problems at the company. I dare say too that if things get any worse than $15 a share, Google might just buy Facebook. It’s a stretch but not imaginable so just remember you saw it first on SiteTrail.