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Facebook Shares Fall to Almost Half the Original Price

Facebook Shares Fall to Almost Half the Original Price

As if on cue,” Facebook shares fell to a new low on Thursday, closing at $19.97, a 6.3 percent decline and 48 percent down from the $38 offering price.

At one point on Thursday, Facebook’s shares fell to a record low of $19.69.

Stock market analysts had been bracing themselves for just such a scenario as the first lock-up period, during which early investors are unable to sell stock, expired. That is, those who were early investors in Facebook — including Accel Partners and Goldman Sachs — have now become able to sell their 271 million shares, on top of the 421 million already in circulation.

Even more shares could be cast upon the market in the upcoming months as more lock-ups expire. By November 14, investors will be able to sell 1.32 billion shares.

Facebook CEO Mark Zuckerberg, while still a billionaire, lost some $600 million on Thursday so his net worth is “only” $10.2 billion.

As often repeated, Facebook has yet to prove that its store of personal data from 955 million users can be turned into a profit. The social media company continues to gain the lion’s share of its revenue from advertising and payments from virtual games played on its platform; it is trying out some new ways to make money including offering online gambling to users in the UK and some new advertising tools.

Doubts remain about Facebook’s ability to generate ad revenue as more and more people access the site from mobile devices which, with their smaller screens, make advertising more challenging to integrate.

It’s not the best forecast for Facebook as far as generating profits. But Tech Crunch‘s Josh Constine argues that Facebook should “stay the course.” He quotes Zuckerberg’s pre-IPO letter:

“Facebook was not originally created to be a company. It was built to accomplish a social mission — to make the world more open and connected.”

As a mission, this sounds great and that’s why millions have flocked to Facebook and are using it right now. Facebook, it could be said, is a great idea and a great site enabling people to be and stay “connected.”

But can a publicly-traded company flourish (i.e., please its investors), let alone survive, on such noble — idealistic — principles?

Related Care2 Coverage

Facebook’s Terrible, Awful, No Good Day

Step Away From the Computers, Says Silicon Valley

Facebook’s Share Price Falls To New Low: Time To Logout?

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Photo by Images_of_Money

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53 comments

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4:43PM PDT on Aug 19, 2012

WE will be lucky and make it BIG again? yeah just keep using the p,,,,, enlargers and inflate yourselves whoever WE are, quoted from previous smart a$$ comment, because the same info on the election reg forms and census and each time you go shoping with cards, that same info and details gets sold off too, and your mobile smart phone apps gets tracked and your habbits and patterns gets sold too,
facebookers who volunteer all their true data do so at their own risk, but in these days of wireless tech no one is immune , not even the WE smarta$$ who keeps viagra and enlargers and strange bed fellows

3:42PM PDT on Aug 19, 2012

What is wrong with you people?

You're supposed to believe everything that investment brokers and bankers tell you.

Facebook must be worth a fortune because they sell the personal info they get from suck^H^H^H^H clients to anyone who'll pay them. ie. investment brokers, Nigerian princes, Viagra salesmen and penis enlargement salesmen.

The price must go back up or all those of us who told you Facebook would make you rich will look like idiots and you might not fall^H^H^H^H believe everything we say next time.

Having said that, we made lot of money with put options this time, but I reckon we'll be lucky to do it as big again.

6:14PM PDT on Aug 18, 2012

you sure about that? the angels in bible wear clothes like cotton gowns or silk gowns, i am sure you meant " no trees grow in the dessert sand" anyway i love trees and you can make hell or heaven on earth so in my heaven i have trees lots and lots of trees, they make heaven beautiful,,
but joke aside, we ARE facebook, compliments of the original founders, and if it needs money to keep it a float am sure each menber would be happy to be given a one off dividend, or be allowed to purchase a one off dividend,
of course Mr facebook may eventually carry on making changes/tweeks without asking us for ideas, that none of us find helpful or practical, and in doing so eventually distroy the facebook or cause mass exodus,

3:16AM PDT on Aug 18, 2012

No trees grows into heaven.

10:43PM PDT on Aug 17, 2012

Thanks for the post.

9:34PM PDT on Aug 17, 2012

as a 3-year user, I honestly think that one of their problems *might* be Timeline--that it was basically forced on us--we were only given a choice at the beginning--but that choice was only to switch to it now--or wait until everyone had to use it. That wasn't a choice. The 'choice' would have been -do we want to keep the old way (where we had no problems until they tweaked it--and every time they messed with something--it messed up our walls, or game play, etc.), or do we WANT to switch to Timeline, where despite tutorials--many people still have problems navigating. It can be confusing. There are things that we don't *really* need to know (in my opinion), like what things/objects were collected by friends in games--several days or weeks ago. The thing I like best about it is the bigger header pic...but no one I know LOVES Timeline. Most have complaints. A lot of people have left fb, and switched to Google+ or something like that because of it.

7:32PM PDT on Aug 17, 2012

Most times, those get rich quick schemes don't work out. I feel sorry for those who have lost hard earned money because of the wall street hype.

6:44PM PDT on Aug 17, 2012

Ha take that Suckerberg

5:27PM PDT on Aug 17, 2012

ha

4:32PM PDT on Aug 17, 2012

I bought FB and now have to hold it until it goes up..made a terrible mistake buying it..never had a stock do this..I have Amazon, Google and Apple and they are doing great for years so thought FB would do the same.

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