Facebook Minus Quarter

facebook_minus_quarter2On Tuesday the price of the shares on NASDAQ stock market fell below $ 30 per share – the price dropped another 9.62% down to $ 28.84. The Facebook company value fell by 24%, to $ 61.66 billion since the Facebook IPO on May 18. Investors start talking about “bubble effect” of the social network and that the real level is $ 25 per share.

“It’s pretty stunning to watch,” said Keith Bliss, a senior vice president at Cuttone & Co. “I haven’t seen a turnaround in sentiment this severe in 15 years, and certainly not for an IPO.”

“It’s hard to imagine it now based on the problematic first week of trading, but a piece of unexpected good news could cause investors to jump back in and send Facebook shares shooting upward”, said Andrew Shinn of Astec Analytics.

We already wrote about Facebook IPO Failure reasons, now it’s visible how deep they are. Seems that other Tech companies will think twice before going to IPO now. Russian clone of the social network, called “Vkontakte” already postponed it’s IPO.

Dmitry Oreshko

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