Facebook's value has fallen from an estimated $104 billion to $61.98 billion in the two weeks since the company went public.
In after-hours trading the company went down another 0.5 percent to $28.69, TechCrunch reported.
According to TechCrunch, that new share price gives the company a
market capitalization of $79.02 billion, down from $115 billion market
cap Facebook opened at on the day of its IPO when it started trading at
$42.05 a share.
Wall Street traders and analysts have expressed concern over how
Facebook could continue to grow. The social networking site boasts it
has 900 million members, however they have shown no plan to monetize
their membership.
More from GlobalPost: Facebook Camera: Facebook's own Instagram
Facebook has hinted at plans to release its own smartphone, however
even this announcement did nothing to quell stock owners nerves.
"They are clearly looking at smartphones and are trying to become
more vertically integrated with their users. They just don't want to be
another app on Google's or Apple's platform," Ryan Jacob, of the Jacob
Internet Fund, told Reuters.
Jacob added that speculation that Facebook is debating working
outside their main expertise of web and possibly planning another large
acquisition may be unsettling to some investors.
Jacob also told Reuters he did not buy stock in Facebook when it went
public, nor does he have any plans of buying into the company now.
No comments:
Post a Comment