Facebook's stock falls below original offering price (13%)

NEW YORK (CNNMoney) -- Facebook's stock slid below its offering price in early trading Monday, following a lackluster debut day. Facebook (FB) fell as low as $33 in the first half-hour of trade, holding around $33.52 at 10 a.m. ET. That's a more than 13% drop from Friday's $38.23 closing price.

Facebook Stock Slide

I can't really say this surprising to me. It was kind of a red flag when we heard that over 50% of the original holders sold their shares right away. If they thought the stock was going to explode they would have held onto them but instead they cashed them in.

It was bound to fail. It was priced too high and they estimated the business to be worth $100bn.

COME ON!!!

Yeah facebook is famous, but not that big of a deal.

You mean the virtual equivalent of a roadside billboard isn't worth billions of dollars?

Whodathunkit.

This stupid habit of overvaluing ad space has to end.


Posted Via ATS Mobile: m.abovetopsecret.com

I'm also not shocked to see the value sinking. What goods and/or services does Facebook provide? Only data, which can really only be applied by another company for marketing, not sales. Facebook will go the way of myspace soon. Lost and forgotten in the history of internet.

10% of respondents on a questionaire believed Facebooks shares would close between 90 and 100 dollars per share within 24hrs of trading on them starting, i bet those guys thought they were getting a bargain and bought loads of stock.
unlucky!!!.

A few heads have said Zuckerberg made himself look like a child with the way he dealt with the stock sale, not what they expected from him.

roy tov

Facebook could have created using an array of innocent tactics a positive sentiment towards itself and influenced in such a way the market behavior in the IPO day. Instead, Zuckerberg was busy issuing pretty pictures of himself to the media.

And from what I know, the stocks were only really offered to million/billionaires first!

So, all in all, a good result ...

reply to post by faryjay


Thats right. But those are the ones that made money with the stocks. So thats not good at all. The little ones will loose much more because they aren´t on the fence like the big ones. They know stuff before it happens (as they knew about the announcement last week beforehand).

It was clear as fresh mountain water that the price would shoot up the first days and then miserably fails.

Originally posted by faryjay
And from what I know, the stocks were only really offered to million/billionaires first!

So, all in all, a good result ...

Not if all those million and billionaires sold their shares ASAP to make a few quick bucks before the not-quite-so-rich were left picking up scraps as they slide.

I couldn't really care less about foozebook and have zero sympathy for anyone losing their excess money. Ha ha.

Maybe they should create stock exchangeville or wallstreetville to recoup their losses??

LIKE

Facebook was MUCH better, 3 years ago...when they actually had cool features. I'm not sure if they still do...but facebook used to have services, where you could buy and sell merchandise; and set up a pay-pal account, to receive your payments. They also used to have 3-way video chat, phone and answering service; all kinds of cool stuff. Now, it's loaded with CRAP. Complete waste of BANDWIDTH.

That's why i made the switch to ATS. At least i can add a cool .gif with my avatar.

reply to post by Epirus

The revelation that a free internet service isn't worth billions has rocked me to my core.

reply to post by LightSpeedDriver

Don´t forget about Yahoo and all the other dot com´s that boomed around 1995-2000~.

Its not a free service at all. You pay with your privacy, one or the other way

Originally posted by DaTroof
I'm also not shocked to see the value sinking. What goods and/or services does Facebook provide? Only data, which can really only be applied by another company for marketing, not sales. Facebook will go the way of myspace soon. Lost and forgotten in the history of internet.

Ok so they provide no goods but, services?
Cmon they have services, they are an adult babysitting tool, a datamine as well, I'm sure that I missed some other nuggets too.
This crap is better at killing the living than world of warcrack was.
Facebook, now you too can be a narcissist! No experience needed.

I think that Google thing will become the next facebook. Hope so if facebook falls. I HATED having to migrate from myspace to facebook and learn a new user interface etc. But now that I'm extremely comfy there and have all my profiles set up etc, It's going to be a pain to move again.

But yeah, I hear that google thing (forgot the name of it right now) is pretty awesome once you get used to it. Long as I can be in constant contact with family and friends who are far away, I don't mind where we end up, long as we all end up there together.

Shocks me some about fb's stocks though! They have SO many users and tons more every day. You'd think it'd be THE thing to put stock in. Wonder what happened?

Originally posted by LightSpeedDriver
reply to post by Epirus

 

The revelation that a free internet service isn't worth billions has rocked me to my core.

Haha!

What I don't get is why so many people generally accepted the estimation of it's worth when it seems so blatantly overstated?

reply to post by sarra1833


Look on the bright side, if you have to move from FB to that google thing you have many FB bff's to help you move!
Best of all, you won't have to pay them in beers!

reply to post by Epirus


At $1bn a year income a valuation of $100bn was absolutely ridiculous. Why the SEC did not investigate the underwriting when they announced that large of a valuation to profit ratio is beyond me.. it should have been red flags. Just a few short years ago the valuation was $15bn and people said that was over inflated. The underwriters however made a massive profit, the larger they value a company the more money they make. Clearly a conflict of interest.

Now that the company is public shareholders will demand larger profits.. which means facebook will have to sell your information to other sources or find a new way of making money.

Zuckerberg lost somewhere around $3bn dollars so far today.

The next thing you will see is facebook allowing e-commerce on the product/company/celeb pages and taking a % , I dont see why they dont offer that service already

Apparently this always happens when a company floats shares because many of the people who are holding large quantities of shares sell them instantly and this makes the price drop. Its not a reflection of the company's worth.

I was going to buy some but i was advised to wait a few days because this was going to happen. The price will go back up soon .. until there is another major privacy concern. Theres not a lot of consumer confidence in the product even though everyone uses it.